Trade War
An escalating fight between countries using tariffs and other trade barriers against each other.
In plain English
An escalating fight between countries using tariffs and other trade barriers against each other.
A trade war starts when one country raises tariffs or barriers and another hits back, and then the first raises them again. Each round aims to pressure the other side, but businesses and consumers on both sides pay the bill.
The US–China trade war that began in 2018, and the wider tariff battles of 2025, rattled markets for months. Typical currency effects: stress for exporters' currencies (like the yuan, won and Aussie dollar), risk-off swings and choppy, headline-driven trading.
Keep this word for good
Your free Private Swap Lounge saves the terms you’ve learned and quizzes you on them. Portal under construction. Expected delivery date is December 01, 2026.