A 'Customs war', also known as a ''toll war'' or ''tariff war'', is a type of economical conflict between two or more states. In order to pressure one of the states, the other raises taxes or
tariffs for some of the products of that state. As a reprisal, the latter state may also increase the tariffs.
One of the latest toll wars happened in 1920's and 1930's between
Weimar Republic and
Poland. The earlier state, led by
Gustav Stresemann wanted to force Poland by creating an economic crisis to give up its territory and increased the tolls for coal and steel products developed there. As a reprisal, the Poles increased toll rates for many German products. This led to fast development of the port of
Gdynia, which was the only way Poland could export its goods to Western Europe without having to transport them through Germany.
To avoid customs wars which are considered harmful to the world's economy, the
World Trade Organization was created.