Trade wars, what are they good for?

Donald Trump stands accused of firing the starting pistol on an international trade war after pressing ahead with his threat to slap tariffs on EU steel imports.

Here we look at what it all means.

Trade wars, what are they good for?

The US steel industry, Mr Trump hopes.

Tariffs on imports should trigger increased demand for US steel, which will be welcomed in the Midwest 'rust belt', where Mr Trump got a lot of support at the 2016 election.

However, US steel consumers would have less choice and could be forced to pay more for steel products, which could mean higher prices.

What will tariffs mean for the EU?

EU exports potentially subject to US duties are worth €6.4bn. So the industry fears the tariffs could cause serious damage.

What happens next?

Unless Mr Trump backs down, a trade war seems inevitable.

The EU has already prepared a list of US imports for retaliatory tariffs, including bourbon, blue jeans and Harley-Davidson motorbikes.

And like military wars, trade wars have a tendency to escalate.

So what?

Tariffs on imports generally mean higher prices for consumers.

And according to most economists, trade wars are not usually good news for overall global prosperity.

- Digital Desk and PA

Related Articles

China ‘strongly outraged’ by US sanctions over Russian fighter jets deal

Stocks weather tariff moves amid US-Chinese trade dispute

Latest: China raises tariffs on $60bn of US products in response to Trump's increase

Trump ‘won’t compromise with Canada in trade talks’

More in this Section

Drug support firm Malin on fresh hunt for new CEO

Women urged to inspire in business

Avoca expansion helps to double Aramark profits

European stocks fail to maintain brief recovery

Breaking Stories

As Ariana Grande and Pete Davidson allegedly split, here’s how grief can affect your relationship

Theatre review: The Nightingale and the Rose

1 year since Alyssa Milano’s first #MeToo tweet: Have things actually changed for women?

What to wear to a job interview according to a style expert

More From The Irish Examiner