Trade War vs, Tariff War

Trade wars have been taking place from the beginning of civilization. They are designed to increase market share for domestic products at the expense of competing nations. It often lowers the price of goods sold abroad but lowers profit for the producing companies. In a short trade war, the winner's market share and profit margin will rise above previous marks.
Tariff wars are different. Tariffs are put in place by a nation to protect a nascent domestic industry or to hurt a competing nation's industry. Often, there is no winner. When a tariff is used as a political tool, retaliation occurs from the competing company. In the short term, little damage is done to the nation's economies. Producers with product on the tariff list will be hurt. The smaller the producer, the harder a tariff will affect them. In the longer term, tariffs hurt the economies of both nations. Always, the smaller economy will fair the worst.
Time after time the smaller economy is the loser. EXCEPT if the smaller economy has something the larger economy needs. That is when a tariff war becomes dangerous. In the tariff war between the US and China, the Chinese economy is the smaller. Their economy is being hurt but they have resource needed by the US. That resource is Rare Earth metals. Rare Earth's are used in everything from planes to computers to advanced weapons systems. Our economy has to have them. At any time, China could cut off it's supply to the US.
It is a stupid person who starts a fight hey cannot win. We have had a trade imbalance with China through several Presidential administrations. This is one major reason wide tariffs weren't used by previous President's.

 

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