A trade war is a conflict or dispute between countries characterized by the imposition of tariffs or trade barriers by one nation as a response to trade policies of another. This often leads to retaliatory measures, where affected countries impose their own tariffs on imports from the initiating country. Trade wars typically arise from trade imbalances, unfair practices, or protectionist policies aimed at safeguarding domestic industries. The primary goal of a trade war is to alter trade relations and achieve favorable economic outcomes, such as reducing trade deficits or protecting local jobs. However, trade wars can escalate, resulting in increased costs for consumers, strained diplomatic relations, and negative impacts on global trade and economic growth. The term is frequently used in discussions regarding international economics and policy.
French President Emmanuel Macron announced Europe's strategy to counter U.S. trade policies, highlighting plans for "reciprocal tariffs" on steel and aluminum. This move responds directly to President Trump’s proposed 25%…