Trade war

A trade war is an economic conflict resulting from extreme protectionism in which states raise or create tariffs or other trade barriers against each other in response to trade barriers created by the other party. If tariffs are the exclusive mechanism, then such conflicts are known as Customs wars, toll wars or tariff wars; as a reprisal, the latter state may also increase the tariffs. Increased protection causes both nations' output compositions to move towards their autarky position.

Trade war

A trade war is an economic conflict resulting from extreme protectionism in which states raise or create tariffs or other trade barriers against each other in response to trade barriers created by the other party. If tariffs are the exclusive mechanism, then such conflicts are known as Customs wars, toll wars or tariff wars; as a reprisal, the latter state may also increase the tariffs. Increased protection causes both nations' output compositions to move towards their autarky position.