Event Types

Trade War


Trade Wars take place when two or more countries impose tariffs and other restriction on other countries products in order to support their own domestic industries

  • Trade Wars tend to follow currency wars
  • Primarily involve imposing tariffs on foreign imports
  • Intended to increase domestic growth by supporting domestic producers
  • Tend to fail when trade is balanced because trading partners implement their own tariffs, thus reducing exports
  • Can be more successful for a country with a significant trade deficit with another
  • Sometimes can escalate into full on kinetic fighting wars
  • Often will result in financial crisis (overall the world is not better off with trade wars)