US-China Trade War
The US-China Trade War, characterized by tit-for-tat tariffs and strategic economic competition, continues to shape global trade dynamics. While some sectors, like EU-China EVs, have seen a cooling of disputes, the underlying tensions over technology, market access, and intellectual property remain.
The US-China trade war, which escalated significantly in recent years, reflects a deeper strategic competition between the world's two largest economies. It encompasses not only tariffs on goods but also disputes over intellectual property theft, forced technology transfer, state subsidies, and market access. The conflict has had ripple effects across the global economy, forcing companies to re-evaluate supply chains and prompting other nations to navigate the complex geopolitical landscape.
1 events
Key facts
- Primary Combatants
- United States, China
- Key Issues
- Tariffs, intellectual property, market access, technology
- Status
- Ongoing strategic competition, selective de-escalation
- Economic Impact
- Disrupted global supply chains, increased costs
- Sector Focus
- Technology, agriculture, manufacturing
- Global Ramifications
- Influences trade policies worldwide
On the map
The trans-Pacific supply chain: China’s manufacturing hubs, the Taiwan Strait chip chokepoint, and US West Coast ports.
Key milestones
US imposes tariffs on steel and aluminum imports.
US imposes tariffs on $34 billion of Chinese goods.
China retaliates with tariffs on US goods.
US raises tariffs on $200 billion of Chinese goods.
Phase One trade deal signed, de-escalating some tariffs.
Biden administration reviews and maintains many Trump-era tariffs.
Continued strategic competition in technology sectors.
Focus shifts to supply chain resilience and 'de-risking'.
EU–China EV Trade: From Tariffs to Price Floor as Dispute Cools.
Latest
The dispute has cooled from open tariff escalation toward negotiated arrangements such as a price floor, even as broader US-China and cross-strait tensions persist.
Economic impact
Tariffs, electric-vehicle trade and a proposed price floor sit at the centre, reshaping supply chains and prices for manufacturers and consumers on both sides of the Pacific.
EU–China EV Trade: From Tariffs to Price Floor as Dispute Cools
In January 2026, the European Commission replaced its 7.8–35.3% tariffs on Chinese EVs (imposed October 2024) with a "price floor" system — minimum prices negotiated per manufacturer — after months of negotiations. BYD, Geely, and SAIC can now avoid tariffs by agreeing to sell above a minimum price, reducing the trade war while maintaining competitive controls.
12 Jan 2026National responses
Brussels, Beijing and Washington are each adjusting policy, balancing protection of domestic industry against the cost of a full trade war.
Analysis
Analysts read the shift from tariffs to price floors as a search for a managed truce rather than a resolution, with strategic rivalry continuing beneath the commercial surface.
Transport impact
Trans-Pacific and EU-China shipping lanes carry the goods at stake, so trade measures feed directly into freight, ports and logistics.
More coverage
The contest increasingly extends beyond traditional trade into technology, strategic industries and security flashpoints such as the Taiwan Strait.