The U.S. recently imposed a 15% tariff on Chinese electronics, citing concerns over unfair trade practices. In response, China raised tariffs on American agricultural exports. Meanwhile, the European Union introduced duties on steel imports to protect domestic manufacturers from underpriced competition.

Impact on Businesses

These moves are increasing costs for multinational companies reliant on international supply chains. Small and medium-sized enterprises, in particular, are struggling to absorb the higher costs, which are often passed on to consumers in the form of price hikes.

Outlook for Global Trade

Economists warn that prolonged trade disputes could slow global economic growth and further disrupt supply chains. Diplomatic talks between major powers will be crucial in preventing an escalation that could lead to a full-scale trade war.