A situation in which when one country raises its tariff, other countries retaliate with increases of their own, which trigger yet further increases of tariffs from the first country, is termed
A) escalation of tariffs by stages.
B) a trade war.
C) countervailing duties.
D) Smoot-Hawley war.

Question

Quizplus · Accepted Answer

A trade war occurs when countries engage in a cycle of retaliatory tariffs, leading to escalating trade barriers.

A Situation in Which When One Country Raises Its Tariff