Event Types

Trade War

Trade War

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)