Jesus Christ warns those of us living in these end times that we should expect to hear of “wars and rumors of wars” and that “nation will rise against nation, and kingdom against kingdom” (Matthew 24:6–7). And, it seems, there are many kinds of war! Hot war, cold war, guerrilla war, cyber war… even holy war. Mankind invents many ways to engage in conflict, and Bible prophecy assures us that powerful wars between nations are, indeed, ahead of us. One type of warfare you will be hearing about more and more in the coming months is trade war.Trade wars have been around for centuries, and one may be coming soon to an economy near you!
By: Dexter B. Wakefield
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WHAT IS A “TRADE WAR”?
Sometimes a particular country will put up economic or regulatory trade barriers to imports from another country in order to discourage that nation’s exports and provide an advantage to its own industries. A government may calculate that by reducing imports from the other country, it will protect its own industries and labor. But then the country that the trade barriers harm may retaliate by restricting what it imports from the offending country. A tit-for-tat competition can begin, with each side retaliating in an escalating trade confrontation. When two or more states begin to restrict each other’s imports and exports through tariffs or other trade barriers, the outcome is called a trade war.