Which trade restriction is associated with creating tension between trading nations?

Tariffs are a form of trade restriction implemented by a government to raise the price of imported goods, making them less competitive compared to domestic products. This can create tension between trading nations because tariffs can lead to retaliatory measures from other countries. When one country imposes tariffs, affected countries may respond by imposing their own tariffs on goods imported from the original country, leading to a cycle of escalating trade barriers and disputes.

In contrast, quotas limit the quantity of specific goods that can be imported, which can also lead to disputes but are generally considered less confrontational than tariffs. Embargoes are severe restrictions that prohibit trade with a specific country and are often initiated due to political reasons, leading to clear tensions but in a more extreme manner. Free trade agreements promote cooperation and trade between nations, aiming to reduce barriers and are therefore not associated with creating tension. Overall, tariffs are often at the forefront of trade disagreements due to their direct economic impact and the potential for retaliation.