How might the imposition of tariffs on imports lead to retaliatory measures by other countries, and what is the potential impact on economic efficiency?

When a country imposes tariffs on imports, it makes foreign goods more expensive, which can protect local businesses but also frustrate trading partners. In response, those countries may impose their own tariffs on goods from the original country, leading to a trade war. This back-and-forth can disrupt international trade and create uncertainty for businesses and consumers. For example, if Country A raises tariffs on steel from Country B, Country B might retaliate by taxing agricultural products from Country A. Overall, these actions can decrease economic efficiency because they distort market prices, reduce competition, and can lead to higher costs for consumers.