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Vol. 78 No. 1 (2025): USA and China: A New Global Game

Temat numeru

Trade Wars and Tariffs: Legal and Economic Consequences of the US-China Rivalry

DOI: https://doi.org/10.35757/SM.2025.78.1.03
Submitted: August 22, 2025
Published: November 25, 2025

Abstract

The ongoing trade war between the United States and China is a significant geopolitical and economic confrontation. This article provides a comprehensive legal and economic analysis of the US-China trade conflict. The paper investigates the underlying causes and 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. The study is grounded in the economic theory of protectionism, which holds that states may employ trade-restrictive measures to safeguard strategic sectors of the national economy. From a legal perspective, it examines the domestic and international foundations of the tariff confrontation, focusing on the US reliance on sec. 301 of the Trade Act and the International Emergency Economic Powers Act, as well as China’s response through its Foreign Trade Law and the Law on Countering Foreign Sanctions. These measures are assessed within the broader context of the World Trade Organization, highlighting how unilateral measures interact with, and at times bypass, multilateral trade rules.

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