Trump’s Trade War

The ongoing trade war between the United States and China has had severe global repercussions, disrupting markets, raising prices, and unsettling supply chains. However, a best-case scenario remains within reach—one where both countries shift from confrontation to cooperation, restoring stability and fostering shared economic growth.

In an ideal outcome, the U.S. and China reduce tariffs to pre-trade war levels and commit to fair, transparent trade practices under global frameworks like the WTO. A revised or new long-term agreement would replace the underperforming Phase One deal. Both nations would also establish a framework for technological competition that avoids full decoupling, promoting mutual standards for AI, cybersecurity, and supply chains.

Stabilizing global supply chains would be another key element. Instead of severing ties, both sides could diversify strategically while cooperating on resilience planning. A permanent U.S.-China Economic Cooperation Council could offer a platform for regular dialogue, bringing together government officials, business leaders, and scholars to address long-term issues in trade, technology, and sustainability.

Globally, such an agreement would restore investor confidence, stabilize markets, and benefit developing economies that have been caught in the crossfire. Cooperation would also strengthen international institutions and show that peaceful economic coexistence is still possible between rival powers.

To deescalate tensions, the U.S. should reduce blanket tariffs, adopt a less antagonistic tone, and work with allies to enforce fair trade. China, in turn, must open its markets further, scale back industrial subsidies, and enhance transparency, especially around state-owned enterprises and IP protections.

Ultimately, the goal is not for one country to “win” but for both to recognize their shared role in maintaining global economic stability. A cooperative approach would not only lift both nations but also set an example for conflict resolution in an increasingly interconnected world.