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By 2026, escalating trade wars inflict deep economic damage as tariffs and retaliation fracture supply chains, inflate consumer costs, and choke innovation. U.S.–China decoupling drags global growth down to roughly 2.7%, with tariffs raising production costs by 3–5% and discouraging long-term investment. Beijing’s rare earth restrictions squeeze semiconductors and EV manufacturing, while Europe’s auto and steel sectors suffer under mounting duties, slowing EU growth to near 1.3%. Emerging market
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