The world is in a global trade war. The United States is engaged in high import tariffs against Chinese companies. Europe has import tariffs against almost every country unless they have a deal with you. India has tariffs against solar panels from Japan, China, and Malaysia. The European Union also has sanctions against the Russian Federation and has tariffs against textiles and consumer goods from China. So we are all in a big global trade war with no winners. We are all loosing.
Everyone can tell you why trade wars are bad. But let’s look at a historical example where it did work. I’ll not advocate it will work. I just like to bring you this historical perspective.
Many people don’t realize this but trade limitations are very common. Piracy, protectionism. It all happened and is happening.
Almost everyone sees Germany as the industrial power of Europe. But this industry is built thanks to protectionism. The German Kaiser decided that his government will only buy with its own companies. So BMW, Bailmer and so on were capable to deliver to the own government. For new railroads.
The German motivation was easy. They were trying to bypass the British Empire. The British Empire was dominating the world trade and German companies were going out of business due to the trade they could not compete.
This didn’t really change. Adolf Hitler was operating a highly protective economy. The deals about the Greece bailout was not about helping the Greece government. It was only about protection of terrible bad and stupid loans. So the history of protectionism goes back very long. One thing that happen every time is the final result: it will turn into a scenario where everyone loses.