A trade war is an economic conflict that occurs when a country imposes tariffs and quotas that restrict imports. In retaliation, foreign countries also create trade barriers to deter the country from trading freely with them. Countries usually create tariffs to offset trade deficits, protect their domestic industries from excessive competition and also create employment. This strategy is effective in the short run because it protects the local economy. However, in today’s global economy, it is detrimental in the long run since a country needs international trade. A trade war also increases the prices of imports thus causing inflation.