Why are trade wars harmful?

Answer 1

Trade wars are harmful because they can lead to increased tariffs and barriers, which raise costs for consumers and businesses. This often results in higher prices for goods and reduced economic growth, as companies face uncertainty and may scale back investments. Additionally, trade wars can strain international relations and disrupt global supply chains, leading to further economic instability and job losses. Ultimately, the negative effects can ripple through economies, harming both domestic and global markets.