Diplomatic relations affect trade policies by establishing frameworks for economic partnerships, tariffs, and market access. Strong diplomatic ties often facilitate favorable trade agreements, promoting economic co-dependence and cooperation. Conversely, strained relations can result in trade barriers, such as sanctions or increased tariffs, limiting market opportunities. Countries leverage diplomacy to negotiate terms that reflect their national interests, affecting local industries and consumers. In a globalized economy, the interplay between diplomacy and trade policies significantly influences economic growth, resource allocation, and international competitiveness.