Despite claims that trade wars are easy to win, history tells a different story. Protective tariffs drive up consumer prices, increase production costs for domestic industries, and trigger retaliatory measures from trading partners ultimately weakening global competitiveness. The 1930 Smoot-Hawley Tariff Act fueled economic instability and international tensions, offering a cautionary tale on the risks of protectionism. In today’s interconnected world, where supply chains span multiple continents, tariffs pose an even greater threat to economic stability. While political leaders may push protectionist policies, history warns that such measures often harm both economic growth and global relations. Read more

Can't keep up with the twists and turns of Trump's trade war? The Peterson Institute for International Economics (PIIE) has compiled a comprehensive timeline tracking key events, from initial tariff disputes to ongoing trade battles shaping global markets. Stay informed with their latest update: PIIE Trade War Timeline and click here to explore how markets are reacting to the new tariffs and what it means for global trade.