The United States – China Trade War

January 1, 2019

A trade war happens when countries attack each other's trade with tariffs and quotas, and it can be referred to as a side effect of protectionism1 . This kind of economical war is usually sparked up when one country raises tariffs, i.e. a tax that is imposed on imported products made abroad. Imposing a tax on a product means that people are less likely to buy them, because they've become more expensive. As a result, people buy cheaper local products instead which consequently boosts the local economy (Investopedia). Trade wars can hurt other nation's economies and lead to rising political tensions between them.

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