The trade relationship between China and the United States has always been complicated. In 1979, both countries restored diplomatic ties and entered into a trade agreement. Consequently, their trade volume surged rapidly, from$4billion in imports and exports in that one year to over$750 billion by 2022. A significant turning point occurred in 2001 when China became a member of the World Trade Organization (WTO), facilitating rapid trade growth, making them each other`s largest trading partners.

Since the 80s, Donald Trump has advocated for tariffs as a means to shield American industries. He argued that the U.S. was being “ripped off” by its trade partners

Nonetheless, several challenges persisted in their trade relationship, including concerns regarding intellectual property violations, technology transfer, and an increasing trade deficit for the U.S. Since the 80s, Donald Trump has advocated for tariffs as a means to shield American industries. He argued that the U.S. was being “ripped off” by its trade partners. Upon his election as the 45th president of the United States in 2017, tariffs became a key element of his trade strategy, particularly targeting China.

The trade conflict between the U.S. and China formally commenced in January 2018. President Trump initiated tariffs by imposing 30-50% tariffs on imported solar panels and washing machines. Furthermore, in March 2018, he imposed 25% on steel and 10% tariff on aluminium imports from many countries, including China were levied. By June 2018, these tariffs were expanded to the European Union, Canada, and Mexico.

On July 6, 2018, the United States applied tariffs on $34 billion worth of Chinese products. In retaliation, China promptly imposed equal tariffs on U.S. exports

However, during the trade war between the United States and China, both countries enacted a series of retaliatory tariffs that heightened tensions. On July 6, 2018, the United States applied tariffs on $34 billion worth of Chinese products. In retaliation, China promptly imposed equal tariffs on U.S. exports. This cycle continued and on August 23, 2018,  both countries again imposed 25% tariffs on an additional $16 billion of each other`s imports. The trade dispute escalated further in September 2018, when the United States instituted  10% tariffs on $200 billion worth of Chinese imports. In response, on September 18, China retaliated with 10% tariffs on $60 billion of American goods. Furthermore, other countries also reacted. For instance, Canada applied matching tariffs on July 1, 2018, and India intends to implement trade penalties amounting to $241 million.

Following Trump`s re-election in 2024, the U.S-China trade war escalated again in 2025. From January to April, the average tariff imposed by the U.S. increased significantly from 2% to 24%, reaching the highest levels seen in over a hundred years. On April 9, the U.S. raised tariffs on every Chinese import to an astonishing 145%. Furthermore, a 25%tariff was applied to steel, aluminium and vehicles imported from all nations. Although tariffs ranging from 11% to 50% were scheduled for imports from 57 other countries, their implementation was postponed by 90 days, except for those on China. This indicated that the U.S. took a notably tougher approach toward China than it did with other countries.

The most notable action occurred on April 11 when China ceased the export of essential minerals and magnets important to U.S. industries, along with announcing stricter regulations on raw materials access

In 2025, China responded proportionally to escalating U.S. tariffs. On February 4, it implemented a 15% tariff on U.S coal and LNG, as well as a 10% tariff on crude oil and agricultural machinery. On March 4, China targeted American food items by imposing 15%tarrifs on Chicken, wheat, and corn, and 10% on Soybeans, pork and dairy products. In response to Trump`s 145% tariff, China established an 84% tariff on April 9, followed by a 34% tariff on all U.S. goods on April 10. On April 12, it equalled the U.S.’s 125% tariff. The most notable action occurred on April 11 when China ceased the export of essential minerals and magnets important to U.S. industries, along with announcing stricter regulations on raw materials access, thus shifting the nature of the trade conflict from a fiscal dispute to a competition for strategic resources.

Despite numerous challenges in the trade relationship between China and the USA, these two countries previously made an effort to address those challenges and establish a problem free partnership. Nevertheless, both countries aimed to sustain amicable trade relations. On January 15, 2020, the U.S. and China finalized the Phase One Trade Agreement, which came into effect on February 14, 2020. This agreement emphasized on intellectual property, technology transfer, U.S. agricultural exports, and financial services.

China promised to buy $200 billion  U.S. goods and services by 2021, compared to 2017 . But by the end of 2020, China had only reached 58% of its target. Analysts at the Peterson Institute for International Economics called the deal a failure. While the agreement stopped further tariffs temporarily, it did not solve the deeper issues between the two countries.

The U.S. China trade war has proven to be costly for both countries

The U.S. China trade war has proven to be costly for both countries. While the original goal was to protect American industries and reduce the U.S trade deficit, the outcomes have  been far less positive. Instead of clear benefits, the trade war brought higher prices, supply chain disruptions, and economic uncertainty.

Furthermore, the Phase One Trade Agreement showed that even agreements between superpowers can fail if goals are too high and enforcement is weak. However, COVID-19 pandemic only made the situation worse, highlighting how fragile international trade agreements can be under unpredictable global conditions.

The renewed trade tensions in 2025, with high-record tariffs and export bans on essential materials, further escalated the conflict

The renewed trade tensions in 2025, with high-record tariffs and export bans on essential materials, further escalated the conflict. These actions made it clear that the trade war was not just about economics, it had evolved into a broader struggle over technology leadership, national security, and geopolitical influence.

In the end, there are no real winners in this prolonged trade war. The primary victims are small and medium enterprises, consumers, and developing nations trapped between two major global powers. The lesson is clear: trade conflicts between giants often come at a global cost and it is the most vulnerable who pay the highest price.

Disclaimer: The opinions expressed in this article are solely those of the author. They do not represent the views, beliefs, or policies of the Stratheia.