How do tariffs contribute to global trade tensions?

Tariffs contribute to global trade tensions primarily by imposing additional costs on imported goods, which often leads to lower demand for those foreign products. When a country applies tariffs, it raises the price of the imported goods, making them less competitive compared to locally produced items. This can provoke retaliatory tariffs from other nations, intensifying trade disputes and economic conflicts.

This dynamic can cause increased strain in international relations, as countries may feel that their trade rights are being infringed upon, leading to a cycle of protectionism. The resulting scenarios often result in heightened tensions between countries as they navigate the impact of higher prices, reduced imports, and potential job losses in sectors reliant on trade.

The other choices do not effectively capture the essence of how tariffs escalate trade tensions. While tariffs can reduce dependency on imports and limit competition from foreign goods, these aspects are less about the tensions themselves and more about the economic policies' broader implications.