The 2025 Trade War between the USA and China: A Journalist's Analysis

The year 2025 will be remembered as a watershed moment in the history of international trade relations. The trade war between the United States of America and the People's Republic of China, which began in 2018, reached its climax in 2025, sending shockwaves across the global economy. As a journalist, it is essential to analyse the causes, consequences, and implications of this trade war, which has altered the dynamics of international trade and diplomacy.

Causes of the Trade War

The roots of the trade war can be traced back to the Trump administration's decision to impose tariffs on Chinese goods in 2018. The move was seen as a response to China's alleged intellectual property theft, forced technology transfer, and unfair trade practices. However, the real motivation behind the tariffs was to address the massive trade deficit between the two countries, which had grown to over $400 billion in 2017. The Chinese government, under President Xi Jinping, retaliated with tariffs on American goods, including soybeans, aircraft, and automobiles.

The trade war escalated in 2025, with both countries imposing additional tariffs on each other's goods. The USA imposed a 25% tariff on $250 billion worth of Chinese goods, while China retaliated with a 20% tariff on $110 billion worth of American goods. The trade war had become a full-blown economic conflict, with both sides refusing to back down.

Consequences of the Trade War

The consequences of the trade war have been far-reaching and devastating. The global economy has suffered, with trade volumes declining and investment flows slowing down. The International Monetary Fund (IMF) estimates that the trade war has reduced global economic growth by 0.5% in 2025, with the USA and China bearing the brunt of the impact.

The trade war has also led to a significant decline in international trade. The World Trade Organisation (WTO) reports that global trade has declined by 10% in 2025, with the USA and China experiencing a 20% decline in bilateral trade. The decline in trade has led to job losses, factory closures, and a decline in consumer confidence.

The trade war has also had a significant impact on the agricultural sector. American farmers, who are heavily dependent on exports to China, have been hit hard by the tariffs. Soybean exports, which were worth over $12 billion in 2017, have declined by over 50% in 2025. The agricultural sector has been forced to rely on government subsidies to stay afloat, which has added to the fiscal burden of the USA.

Implications of the Trade War

The implications of the trade war are far-reaching and will be felt for years to come. The trade war has marked a significant shift in the global economic landscape, with the USA and China emerging as rival economic powers. The trade war has also led to a decline in the influence of the WTO, which has been unable to resolve the dispute between the two countries.

The trade war has also led to a significant increase in tensions between the USA and China. The two countries have been engaged in a diplomatic war of words, with both sides accusing each other of unfair trade practices and intellectual property theft. The trade war has also led to a significant increase in military tensions, with both countries increasing their military presence in the Asia-Pacific region.

The trade war has also led to a significant shift in the global supply chain. Companies are increasingly looking to diversify their supply chains, moving away from China and the USA. This has led to a significant increase in investment in countries such as Vietnam, Mexico, and Indonesia.

Conclusion

In conclusion, the 2025 trade war between the USA and China has been a significant event in the history of international trade relations. The trade war has had far-reaching consequences, including a decline in global trade, a decline in international investment, and a significant increase in tensions between the two countries. The trade war has also led to a significant shift in the global economic landscape, with the USA and China emerging as rival economic powers.

As a journalist, it is essential to analyse the trade war's causes, consequences, and implications. The trade war has marked a significant shift in the global economic landscape, and it is essential to understand its implications. The trade war has also led to a significant increase in tensions between the USA and China, and it is essential to analyse the implications of this increase in tensions.

In the end, the 2025 trade war between the USA and China has been a significant event that has altered the dynamics of international trade and diplomacy. As a journalist, it is essential to continue to analyze the implications of this event and to provide insights into the future of international trade relations.