Trade War refers to a conflict state between two or more countries in which they retaliate against each other through measures such as imposing additional tariffs, setting non-tariff barriers (e.g., quotas, bans), and restricting investment, in order to protect domestic industries or force the other side to change its trade policies. Usage scenarios: commonly seen in escalating bilateral trade frictions, WTO disputes, news commentary, and foreign trade risk analysis. Notes: A trade war raises import and export costs, disrupts supply chains, and increases exchange rate volatility. Foreign trade practitioners need to pay attention to tariff increase lists, changes in rules of origin, and countermeasures, and adjust pricing, market, and logistics strategies in a timely manner. Compared with 'trade friction,' a trade war is more severe, broader in scope, and longer lasting; unlike 'trade protectionism,' a trade war emphasizes mutual confrontation and retaliatory actions between countries, while protectionism focuses more on unilateral policy tendencies.
📝 Examples
1. During the China-U.S. trade war, the United States imposed additional tariffs on about $360 billion worth of Chinese goods, causing our costs for furniture exported to the U.S. to rise by 25%, and we had to renegotiate the sharing ratio with customers. (Note: Demonstrates the direct impact of additional tariffs on costs and contract negotiations.)
2. To avoid the risk of a potential trade war between the EU and China, the company decided to move part of its production lines to Vietnam and apply for a Vietnamese certificate of origin to enjoy lower tariffs. (Note: Demonstrates how companies respond to trade war risks through supply chain relocation.)
💡 Foreign Trade Tips
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