US–China Trade War
The Trump administration imposed tariffs on $34 billion of Chinese goods, citing unfair trade practices and intellectual property theft; China retaliated with equivalent tariffs, escalating into a $360-billion tariff standoff that disrupted global supply chains and accelerated decoupling pressures.
Origins
The Trump administration's trade offensive against China cited three main grievances: a bilateral trade deficit of over $375 billion; Chinese practices of forced technology transfer, intellectual property theft, and subsidies for state-owned enterprises; and China's alleged manipulation of the renminbi. In March 2018, President Trump signed an executive order imposing 25% tariffs on $50 billion of Chinese goods under Section 301 of the Trade Act of 1974. China immediately retaliated with equivalent tariffs on US goods.
Escalation
The tariff war escalated through 2018–2019 in successive rounds. By September 2019, the US had imposed tariffs on approximately $360 billion of Chinese goods; China had tariffed roughly $110 billion of US exports (constrained by the smaller volume of US imports). Additional pressure included restrictions on Huawei and ZTE, export controls on semiconductors, and the effective blacklisting of Chinese technology companies. A "phase one" trade deal was signed in January 2020, but core structural issues remained unresolved.
Long-Term Consequences
The trade war accelerated a broader decoupling of the US and Chinese economies in technology, investment, and supply chains. Companies began diversifying manufacturing out of China to Vietnam, Mexico, and India. The concept of "friend-shoring" — concentrating supply chains in allied countries — gained traction. The Biden administration largely maintained Trump-era tariffs while adding new technology restrictions. The trade war marked the end of the post-Cold War consensus that economic engagement with China would lead to political liberalisation.