$BTC A trade war is an economic conflict where countries impose tariffs or other trade barriers on each other to protect domestic industries. It usually begins when one nation raises tariffs on imports, prompting retaliation from affected countries. This tit-for-tat escalation can disrupt global supply chains, increase consumer prices, and reduce international trade. While the intent is to support local businesses and reduce trade deficits, prolonged trade wars can hurt economies, trigger inflation, and strain diplomatic relations. Notable examples include the U.S.-China trade war, which began in 2018 and impacted markets worldwide. Effective resolution often requires negotiation and compromise between involved nations.