A trade war refers to a situation in which countries impose tariffs or other trade barriers on each other in response to trade practices that they consider unfair. This often results in a cycle of retaliation, where one country raises tariffs on imports from another, prompting the affected country to retaliate with its own tariffs. Trade wars can arise from trade imbalances, allegations of unfair competition, and protectionist policies aimed at boosting domestic industries. The consequences of a trade war can include increased prices for consumers, disruptions in global supply chains, and economic uncertainties. Trade wars can also impact international relations and may lead to negotiations or resolutions aimed at reducing tensions and restoring normal trade relations.
France and Portugal are proposing reciprocal tariffs on steel and aluminum in response to U.S. duties. This strategy is announced as part of a broader European effort to protect industries…