The ongoing trade war between the United States and China remains one of the most significant geopolitical and economic confrontations of the 21st century. This article provides a comprehensive legal and economic analysis of the U.S.-China trade conflict, examining its origins, escalation, and key developments as of 2025. The paper investigates the underlying causes, including persistent trade imbalances, national security concerns, and the strategic rivalry for global economic and technological leadership.
The study evaluates which economy is more likely to experience long-term adverse effects, using empirical data and comparative economic indicators such as employment rates, national debt levels, GDP growth, inflation, and fiscal revenues. From a legal perspective, the article analyzes the international trade framework, with particular emphasis on World Trade Organization (WTO) rules, violations of the Most-Favored-Nation (MFN) principle, and unilateral tariff measures. It also examines the application of U.S. domestic trade laws—including the International Emergency Economic Powers Act—and China’s legal responses, notably the Anti-Foreign Sanctions Law.