Proceedings of the 14th International Conference on New Ideas in Management, Economics, and Accounting
Year: 2025
DOI:
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US-China Trade War and Its Implications on American Economy
Deepto Chakraborty
ABSTRACT:
The US-China trade war, one of the most significant and impactful economic conflicts in modern history created serious and profound implications for the American economy along with the global economy. The trade war has been driven by multifaceted reasons for example Donald Trump’s protectionist economic policy, imposing substantial amounts of tariffs on Chinese products. This research paper will examine its profound impact on the US economy keeping intact with trade deficits, manufacturing employment, and consumer buying behavior. The trade war itself has been a great testimonial of the American government’s critical staunch on the Chinese government’s trade and economic policy. The geopolitical conflicts between China and America have exacerbated the ensuing trade war eventually. The increased tariffs on imported goods from China have disrupted the supply chain management system which put American businesses into a shamble and temporary catastrophe. As a result, the production costs of these American goods rose significantly which turned out to be a bleak chapter of American trade and business.
This research paper will throw light upon the potential challenges encountered by US exporters as retaliatory actions that created a serious impediment to important and prolific international markets for example agriculture, where American farmers grappled with a substantial amount of financial losses. The US government decided to shift its trade partner and move away from China. Unfortunately, these stern initiatives and efforts facilitated adjustment costs and most importantly job losses.
The economic impacts and financial losses from this trade have been beyond redemption, the study will explore and analyze the long-term implications and impacts in key sectors of agriculture, technology, steel, and aluminum. The geopolitical implications originating from this trade will be the flashpoint of this research paper. Finally, it can be concluded that the US-China, the modern economic and trade war, its intricacies and complexities ‘and most importantly, its impact on the American economy and global economy will discussed broadly in this research study.
keywords: Protectionism, trade deficit, tariffs, agriculture, technology