Trade wars now cost global trade hundreds of billions, just like real wars

Governments are increasingly using economic pressure instead of military action to resolve international conflicts. This shift has put hundreds of billions of dollars in global trade at risk, especially between the US and China.

For years, it was hard to tell if 'trade wars' were just talk or real economic damage. This paper shows they are real, and they hurt trade as much as actual military conflict. Governments now have a clear, measurable alternative to military force that still inflicts economic pain, and they are using it more.