Trade war

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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.[1] Increased protection causes both nations' output compositions to move towards their autarky position.[2]

Trade wars could be escalated to full conflict between states, as evidenced in the First Opium War which started after the Qing government blockaded its ports and confined British traders, resulted in the dispatch of the British Navy to China and engage the Chinese Navy in Battle of Kowloon.

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References[edit]

  1. ^ "What is trade war? definition and meaning". BusinessDictionary.com. Retrieved 2017-08-15.
  2. ^ Staff, Investopedia (28 September 2009). "Trade War".

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