Trade wars: rough seas ahead

June 2025

Trade wars, once a relatively dormant issue in an era of globalization, have re-emerged as a force shaping the economic landscape.

International trade can be a powerful engine of growth, but it also becomes a battleground when countries engage in trade wars. Economists generally agree that free trade tends to benefit the greatest number of people, while trade barriers shrink the overall economic “pie.” Even so, nations periodically resort to protectionist measures such as tariffs, quotas, subsidies, and more that can trigger retaliatory actions and escalate into trade wars.