Trade policies are regulations and laws that governments implement to control the flow of goods and services across their borders. These policies shape international trade and can include tariffs, quotas, trade agreements, and import/export regulations. The primary goal of trade policies is to protect domestic industries, promote economic growth, ensure fair competition, and manage the trade balance. By imposing tariffs, for instance, a government can make imported goods more expensive, encouraging consumers to buy domestic products. Conversely, trade agreements may reduce barriers to trade, fostering cooperation and economic integration among countries. Effective trade policies aim to balance domestic interests with international relations and economic efficiency.
A global trade conflict intensifies as the U.S. implements $918 billion in tariffs, triggering retaliation from Canada, Mexico, and China. The U.S. tariffs include a 25% duty on imports from…