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Dynamics of Pre-2025 Inter-Continental Trade and Implications of United States of America’s Recent Trade Policy

Rex Oforitse Aruofor, Ph.D, Daniel Risiagbon Ogbeide, Ph.D

Abstract

With the recent trade policy shifts being experienced among the world’s super powers, it becomes expedient to investigate the cause of the present trade war. A trade war occurs when countries impose tariffs or other trade restrictions on one another, raising the cost of imported goods and disrupting international trade. These disputes often involve retaliatory actions and heightened political tensions between trading partners. While the goal continues to be to address the trade imbalance and protect American industries, the reverberations of this economic standoff extended well beyond the two nations. Trade War disrupts global supply chains, slows economic growth worldwide, and forces international businesses to adapt to new realities. Trade wars impose significant global economic, political, and financial consequences, typically resulting in higher consumer prices, disrupted supply chains, and reduced GDP growth. By raising tariffs and imposing restrictions, nations aim to protect domestic industries but often provoke retaliation that reduces investment, fuels inflation, and reduces trade efficiency. It is ironical that the major protagonists of globalization and trade liberalization are the ones involved in the current trade war. This study attempts to analyze the circumstances leading to this trade war with a view to determining any justification. Even though the Americas have lost their trade dominance to the Asian countries, the present trade war will only escalate political tension and worsen trade situation for Africa and Oceania. It is found that there are often negative economic consequences of trade wars. The major warring parties are therefore enjoined to reflect on their actions and make necessary amendments, in the interest of international peace. Key words: Inter-continental, Trade, Policy, Trade War, Total differential modeling approach, Markov Chains, USA, China, UK and Canada.

Keywords

Inter-continentalTradePolicyTrade WarTotal differential modeling approachMarkov ChainsUSAChinaUK and Canada.

References

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