The trade war between America and China, which began with tit-for-tat tariffs in 2018, has now been raging for nearly seven years. With the re-election of Donald Trump in America, the conflict is expected to intensify in 2025. The trade war is spreading geographically, drawing more countries into the fray and posing difficult decisions for governments worldwide.
Countries that had previously managed to avoid involvement are now finding themselves dragged into trade spats with China. This shift indicates an increasing complexity in global trade relations, where national interests often clash with the pull of economic alliances.
Trade war’s global ripple effect
China’s strategy to cope with the escalating trade war involves reducing its reliance on American imports and bolstering relations with alternative markets. However, the leadership under Xi Jinping has demonstrated a willingness to take significant risks, heightening concerns about the potential for broader economic instability. The ongoing trade war is forcing numerous global economies to reassess their positions.
While some see opportunities in the escalating conflict, others fear the repercussions of being caught between two economic superpowers. The spread of this trade conflict to more countries indicates a potential re-shaping of the global economic landscape, with long-term implications for international trade policies and economic alliances. As the trade war looms larger, businesses and economies worldwide must prepare for its unpredictable and far-reaching effects.
