For the entire globe Donald Trump’s Trade Wars have been a hallmark of his presidency, with significant impacts on global trade and economies. In these economic wars, Trump seeks to balance trade deficit with countries of the world.
He has, however, failed to use mere economic indices to drive his actions. In an era where some countries of the world are still patronizing Russia’s energy market, Trump’s reasons for high tariffs for different countries are informed by factors that are even political and social.
Notable of these trade war efforts are:
– China-US Trade War: Trump’s administration imposed tariffs on Chinese goods worth billions of dollars, citing unfair trade practices and intellectual property theft. China retaliated with tariffs on US goods, leading to a trade war that has had far-reaching consequences.
– Tariffs Imposed: The US imposed 34% tariffs on all Chinese goods, which were later increased to 145% on most imports. China responded with 34% tariffs on all US imports, and later increased it to 125%.
– Temporary Truce: A 90-day pause on escalating tariffs was agreed upon in September 2025, reducing US tariffs on China to 30% from 145% and China’s tariffs in the US to 10% from 125%.
Economic Impact
– Global Trade: The trade war has led to a decline in global merchandise trade, with estimates suggesting a 0.2% loss.
– US Economy: The tariffs imposed by the US and China have reduced US GDP by 1.0%, with the trade war affecting various sectors, including agriculture and manufacturing.
– Tariff Revenue: The US government has collected over $264 billion in higher customs duties since the start of the trade war, a sum upon which President Trump prides himself on restoring the US’ hitherto snailing economy.
Other Trade War Efforts
– NAFTA and USMCA: Trump renegotiated NAFTA, replacing it with the USMCA, which aimed to promote fairer trade practices between the US, Mexico, and Canada.
– Steel and Aluminum Tariffs: The US imposed 25% tariffs on steel and Donald Trump’s trade wars have been a hallmark of his presidency, with significant impacts on global trade and economies.
While these wars go on, much is still left to be seen how these whole wars affect the global economic outlook in the coming years.
