Review Article | Volume 4 (2025) | Published in 2025-07-12
Trade Wars and Economic Stability: An Empirical Analysis of the Effects on Global Markets
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Abstract
ABSTRACT
Trade war between countries leads to global instability, As the theory of economy began to mature, unemployment and economic growth became one of the fundamental macroeconomic indicators. We evaluate the impact of trade wars on the global market, using US-china trade war as an example. The study uses past studies to generate comprehensive data to reveal the various implications of trade barriers, protective policies, high taxes on important and crucial market dynamics. By focusing on the relationship between trade wars and economic stability, our study will closely analyse trade flows, investor sentiment, and overall economic performance of the countries involved in the trade war during periods of heightened trade tensions. The research illustrates various impacts such as disruption in global supply chains, increased market fluctuations and instability, economic instability, low productivity or reduced profit margins as a result of high production cost. These challenges and barriers are capable of impeding the economic stability and growth of a country. The research further illustrates the importance of collaboration, transparent communication in solving trade wars between conflicting nations which would in the long run ensure a productive global market. The investigation also offers comprehensive insights on how policy makers, shareholders, investors and businesses can avoid trade war or the resultant effect of trade war to ensure continuous economic growth.
Keywords: Trade Wars; Stability; Market; Volatility, Businesses.
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Copyright (c) 2025 The AuthorsHow to cite
10.3390/ani15040592