Trade Wars & How Nations Fight Them - Tariffs, Subsidies & the Risks of Trade Warfare

Sponsored by Ground News: Compare news coverage. Spot media bias. Avoid algorithms. Try Ground News today and get 40% off your subscription by going to https://ground.news/perun We've talked a lot on this channel about what it takes for nations to fight conventional wars - but with a flurry of new US tariffs announced on targets from the PRC to Canada, Mexico I thought it was time to talk about the mechanics of trade wars. While we mostly give the situation between the US and its tariff targets a bit more time to develop, today we'll look at some of the theory behind trade wars, what factors can give nations advantages in them, as well as some of the risks that can be involved. Patreon: https://www.patreon.com/PerunAU Reading and Sourcing (partial): CRS - U.S-EU Trade Relations https://crsreports.congress.gov/product/pdf/IF/IF10931 CRS - U.S. Crude oil imports from Canada and Mexico and Potential Tariffs https://crsreports.congress.gov/product/pdf/IN/IN12488 Quotas (USA) https://www.cbp.gov/trade/quota/guide-import-goods/commodities White house on tariffs on Canada, Mexico & China https://www.whitehouse.gov/fact-sheets/2025/02/fact-sheet-president-donald-j-trump-imposes-tariffs-on-imports-from-canada-mexico-and-china/ Currency reserves data https://data.imf.org/?sk=e6a5f467-c14b-4aa8-9f6d-5a09ec4e62a4 "Dollar dominance" indicators - Atlantic council https://www.atlanticcouncil.org/programs/geoeconomics-center/dollar-dominance-monitor/ Tariff Rate Quotas (Canada) https://www.international.gc.ca/trade-commerce/controls-controles/notices-avis/trq_info_ct.aspx?lang=eng Visual depiction of U.S. trade balance (2022) https://www.visualcapitalist.com/largest-trading-partners-of-the-us/#google_vignette EU on potential US tariffs https://www.euronews.com/2025/02/03/eu-leaders-vow-to-fight-back-if-trump-imposes-tariffs https://www.politico.eu/article/brussels-vows-firm-response-potential-donald-trump-tariffs-eu-braces-trade-war/ Reporting on Canadian Crude https://oilprice.com/Energy/Crude-Oil/Canadian-Crude-Becomes-a-Bargain-for-China-as-US-Tariffs-Bite.html PRC export restrictions https://www.nytimes.com/2024/12/03/world/asia/china-minerals-semiconductors.html Reporting on consumption in PRC GDP https://www.reuters.com/breakingviews/china-consumer-is-epitome-delayed-gratification-2024-11-04/ US made alcohol in Canada https://www.ctvnews.ca/toronto/local/article/us-made-alcohol-products-will-remain-on-lcbo-shelves-after-tariffs-postponed/ Coffee image https://u.osu.edu/ryanrichardscoffeecommoditychain/sample-page/ PRC tarrifs on Australian wine https://www.abc.net.au/news/2024-03-28/china-government-officially-abolishes-heavy-tariffs-on-wine/103644884 Malaysian and Indonesian export taxes https://www.ofimagazine.com/news/malaysia-and-indonesia-hiking-export-taxes Cybertruck in Europe https://www.bbc.com/news/articles/cz0lldd30xlo https://www.theguardian.com/technology/2024/oct/08/tesla-cybertruck-too-big-and-sharp-for-european-roads-say-campaigners#:~:text=%E2%80%9CCybertrucks%20present%20acute%20dangers%20and,kill%20people%20in%20a%20collision. US oil export reporting https://www.forbes.com/sites/rrapier/2024/03/19/from-ban-to-boom-us-set-new-oil-export-record-in-2023/ US LNG to EU https://money.usnews.com/investing/news/articles/2025-02-03/europe-soaked-up-nearly-all-us-lng-exports-last-month-data-show#:~:text=Nearly%20nine%20of%20every%20ten,2024%2C%20according%20to%20LSEG%20data. EU freezes Russian assets https://www.theguardian.com/world/2024/dec/12/use-frozen-russian-assets-to-aid-ukraine-says-eus-top-diplomat Russia joining WTO https://www.politico.eu/article/eu-welcomes-russias-accession-to-wto/ WTO trade volume data https://www.wto.org/english/res_e/statis_e/trade_evolution_e/evolution_trade_wto_e.htm Caveats & Comments: All normal caveats and comments apply. In particular – I would like to note as always that this material has been created for entertainment purposes and is not intended to be a complete or comprehensive examination of the topic in question and should not be relied upon to inform financial or other similar decisions. Any content relating to the conduct, views, activities or any aspect of any person or character in this video is included for entertainment purposes and does not represent an assertion of fact on those matters or any matters in relation to that person or character. Reporting on PRC investigations into US firms https://www.reuters.com/technology/china-anti-monopoly-regulator-launches-probe-into-google-2025-02-04/ Timestamps: 00:00:00 — Opening Words 00:00:41 — What Am I Talking About? 00:03:35 — a Brief History 00:09:23 — Meet Your Trade Warriors 00:10:34 — Why a Trade War? 00:16:44 — Trade War Tools 00:30:37 — Making a Trade War Work 00:45:52 — Trade War Advantages & the US 00:55:25 — Forest Syndrome 00:59:45 — the Way Forward 01:00:59 — Channel Update