Trade Wars 101: What Businesses Need to Know

Are we on the verge of a trade war? And if so, how would we get out of it?     The aggressive US stance on tariffs is already affecting trade relationships with China, Canada, and Mexico, and that’s before the April 2 announcements of additional tariffs. How do economists define a trade war, and how might one affect not only the US but also the global economy?     Join Steve Odland and guests David Young, president of the Committee for Economic Development, the Public Policy Center of The Conference Board, and Erin McLaughlin, senior economist at The Conference Board Economy, Strategy & Finance Center. They discuss the numerous ways countries wield trade wars, why trade wars create uncertainty for businesses, and why the administration's April 2 announcement on reciprocal tariffs will be pivotal.    (00:43) Defining Trade Wars (03:43) Mechanisms and Effects of Trade Wars (04:37)Role of WTO and Historical Context (05:49)US Tariff Policies and Global Reactions (07:49) Economic Impacts of Tariffs (09:18) USMCA and North American Trade Relations (15:20) China's Strategy and Global Trade Dynamics (17:55) Tariffs as a Tax and Economic Implications (25:32) Conclusion and Final Thoughts   For more from The Conference Board:  Tariff Tracker  The EU's Retaliatory Tariffs Will Hit Beef, Bourbon and More  Survey: As 2025 Begins, CEOs Are Most Worried About a Trade War and Recession