How Tariffs Affect Global Trade Relations

Tariffs have long been used as a weapon in trade wars between economic giants. When one country raises tariffs, the affected nation often retaliates, leading to disrupted supply chains and increased production costs. This has been evident in the U.S.–China trade conflict, where tariffs reshaped global manufacturing.

However, tariffs can also protect domestic industries from cheap imports, giving them a chance to grow. The balance between protection and openness is the real challenge in modern trade.