The trade war is a clash of economic models, political systems, and global ambitions. It reflects profound shifts in the world economy and deep structural fault lines that have been building for decades. Its consequences are broad and far-reaching. The administration’s choice to impose tariffs without precedent has reshaped global trade patterns and is reshaping politics in ways that will last long after Trump leaves office.
The war has reshaped global supply chains, slowed global economic growth, and strained the relations of the world’s two largest economies. It has raised prices for American consumers and hurt companies that produce in the United States but sell abroad. In addition, it has shifted the balance of power in international politics. The rise of politicians like British Prime Minister Keir Starmer and French President Emmanuel Macron has stoked anti-Trump sentiment and strengthened the hand of leaders who have a more conciliatory approach to the United States.
Trump imposed tariffs on billions of dollars in Chinese goods in 2018. He claimed the levies would decrease the U.S. trade deficit with China, bring back manufacturing jobs, and force Beijing to reform its trade practices, including intellectual property theft. But the claims proved unfounded. The levies are not lowering the trade deficit, and many companies have relocated production overseas to avoid paying higher tariffs.
The 90-day truce announced on May 12 paused further escalation but did not address core issues. The United States and China remain far apart in their views of China’s market competition, industrial subsidies, and state-led economic model.