The China–US trade war, which began in 2018 under President Donald Trump, marked a significant escalation in economic tensions between the world’s two largest economies. The conflict started when the US imposed tariffs on Chinese goods to address trade imbalances, alleged intellectual property theft, and unfair trade practices. China responded with its own tariffs on American products, leading to a tit-for-tat escalation.

The trade war affected global supply chains, increased costs for businesses and consumers, and disrupted industries from agriculture to technology. The US aimed to pressure China into changing policies related to technology transfer, subsidies, and market access. China, meanwhile, sought to assert its economic sovereignty and reduce reliance on the US.

In January 2020, both countries signed the “Phase One” trade deal, in which China agreed to increase purchases of US goods, and the US suspended further tariff hikes. However, many core issues remained unresolved, and tensions have continued under President Biden, shifting toward broader strategic competition involving technology restrictions, investment barriers, and national security concerns.

The trade war reflects deeper geopolitical rivalries and has accelerated global efforts to diversify trade partners and reduce dependence on single markets, reshaping the global economic landscape in lasting ways.