Trade disputes can significantly affect diplomatic relations between countries. Conflicts over tariffs, quotas, and trade agreements can generate tension and lead to retaliatory measures, straining bilateral ties. Such disputes can stall ongoing negotiations or undermine cooperation in other areas, like security or environmental policy. Additionally, trade wars can prompt nations to reassess alliances, shifting their focus toward countries that align better with their economic goals. As a result, maintaining healthy trade relations is crucial for broader diplomatic stability and collaboration.