What impact do trade wars have on the global economy?

What impact do trade wars have on the global economy?

Trade wars can lead to increased tariffs, which raise prices for consumers and disrupt supply chains.

Can you give me an example of a recent trade war?

Sure! The trade war between the U.S. and China, which began in 2018, involved tariffs on hundreds of billions of dollars in goods.

How do trade wars affect small businesses?

Small businesses may face higher costs for imported goods, which can reduce their profit margins and competitiveness.

Are there any long-term effects of trade wars?

Yes, long-term effects can include shifts in global supply chains, changes in consumer behavior, and potential economic recession.

What can countries do to mitigate the effects of trade wars?

Countries can negotiate trade agreements, diversify their trade partners, and invest in domestic industries to reduce reliance on imports.