A trade war occurs when countries impose tariffs, quotas, or other trade restrictions on each other in response to disputes. These retaliatory measures aim to protect domestic industries but often escalate tensions and disrupt global markets. Often threats of tariffs or other trade restrictions are used to bring trade partners to the negotiating table. How Trade Wars Start Trade wars usually begin when a country perceives unfair trade practices, such as: Trade imbalances – One country imports far more than it exports to another. Subsidized industries – Governments provide financial aid to domestic companies, undercutting foreign competitors. Intellectual property theft – Companies or governments are accused of copying technology or patents without permission. Currency manipulation – Countries devalue their currency to make exports cheaper and imports more expensive. To counter these issues, a government may impose tariffs (taxes on imported goods), quotas (limits on imports), or sanctions (restrictions on trade with specific companies or industries). Consequences of a Trade War While trade restrictions may offer short-term advantages, they often lead to economic consequences, including: 1. Higher Prices for Consumers Tariffs make imported goods more expensive,