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Retaliatory Tariff

Trading Term

A retaliatory tariff is a trade measure imposed by a country in response to tariffs or trade barriers set by another country. This type of tariff is used as a tool in trade disputes to pressure the offending country to remove or reduce its trade barriers. For example, if Country A imposes high tariffs on steel from Country B, Country B might retaliate by imposing tariffs on agricultural products from Country A. Retaliatory tariffs can escalate trade tensions and lead to trade wars, affecting global trade dynamics and economic relationships between countries.

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