Definition ∞ A global trade war describes an economic conflict between multiple countries, primarily involving the imposition of tariffs and other trade barriers. This situation results in retaliatory measures, disrupting international commerce and global supply chains. Such conflicts often lead to increased costs for consumers and reduced profits for businesses. They can significantly impact financial markets and investor confidence worldwide.
Context ∞ The state of a global trade war creates considerable uncertainty in financial markets, affecting investor behavior across various asset classes. Key discussions revolve around the economic consequences for participating nations and the broader global economy. A critical future development involves the potential for de-globalization trends and how digital assets might offer alternative mechanisms for cross-border value transfer amidst such economic friction.
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