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The China–US trade war began in 2018 during the Trump administration, when the United States imposed tariffs on Chinese goods worth billions of dollars. The stated goals were to reduce the trade deficit, combat intellectual property theft, and pressure China to change unfair trade practices. In retaliation, China imposed its own tariffs on American products, especially targeting agricultural goods, creating tensions that severely impacted global trade flows.

As the conflict escalated, businesses in both countries and around the world experienced higher costs, disrupted supply chains, and market uncertainty. US farmers, manufacturers, and tech firms faced losses, while Chinese exporters dealt with declining US demand. The World Trade Organization became less effective as disputes piled up.

In January 2020, the two nations signed a “Phase One” agreement. China promised to buy more US goods and improve IP protections, while the US paused further tariff increases. However, most tariffs remained in place, and broader issues—such as tech dominance, national security, and influence in Asia—continued under the Biden administration.

The trade war exposed the fragility of global economic interdependence and encouraged countries to diversify their supply chains. It marked a shift from free trade toward strategic competition between superpowers.

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