Governments have reportedly arranged to incorporate various forms of spyware and malware in Internet-connected products. In response, some countries have denied entry or imposed restrictions on imported products with such potential risks. But this raises many policy issues, including (1) what is a questionable country (and is it OK if an “ally” spies on us?), (2) what products are of most concern, (3) assuming such restrictions quickly become worldwide policies with retaliations, what might be the long-term impact on international trade and the global economy as Internet-connected products proliferate, and (4) what voluntary standards could be put in place to lower the risk of trade wars? These issues need to be rigorously studied in advance of policy makers making quick decisions – in some crisis condition – without understanding the impacts and consequences.