Trade wars have been disrupting markets for many years and any market move to the downside has lately been identified with trade spats. Recently, Canada and Mexico imposed retaliatory tariffs against the United States in response to duties on steel and aluminum.
With all the talk of trade wars, CNBC provided a brief overview of trade wars in a video that highlighted the following:
- Origin of trade wars began with the International Monetary Fund–the organization was created specifically to deal with trade wars
- The Great Depression traces back to trade conflicts–the Smoot-Hawley Trade War: it became in immense compendium of tariffs
- Following the Smooth-Hawley Trade War, countries committed to prevent trade wars from occurring in the future
- World trade grew more than industrial production
- Chicken war in the 1960s–Europeans taxed American chickens and vice versa
- U.S.-Japan trade dispute is an example of a trade dispute not ending badly–new trade agreements negotiated
- Trade spats occur all the time versus actual trade wars
To watch the full video, click below:
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