Trade War

Trade wars are initiated by one country imposing tariffs, import quotas and/or other barriers on imports from another country as a punitive measure to correct perceived illegal or unfair practices (including dumping) by that country, or as a matter of protectionist trade policy. Actions by one government attracts retaliation, which results in escalation. Countries that believe another country is not acting in alignment with the trade rules of the World Trade Organization can take cases to the WTO’s Dispute Settlement Body.

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