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A trade war is an economic dispute between two countries. It can occur when one country retaliates against another’s perceived unfair trading practices with restrictions, such as tariffs, on imports. Domestic trade unions or industry lobbyists can pressure politicians to make imported goods less attractive to consumers, pushing international policy toward a trade war. Also, trade wars are often a result of a misunderstanding of the widespread benefits of free trade. Advocates say trade wars protect national interests and provide advantages to domestic businesses. Critics of trade wars claim that they ultimately hurt local companies, consumers, and the economy.
