The U.S. Trade War Will Bring Nothing But Chaos to the World

If there were any doubts about the Trump administration’s inherent obsession with decoupling, polarization and jolting of global trade, then that can be laid to rest. A series of statements and measures made by the U.S. government on economic relations with China including administrative decision to hit Chinese goods with an additional 10 percent tariffs despite China, Mexico and Canada being America’s top three trading partners, have been made.

To make matters worse, Washington is pushing for investment controls through more expansive processes impacting original guidelines of the Committee on Foreign Investment in the United States (CFIUS), including preventing ‘friendly’ foreign investors from partnering with investors from China.

Such punitive, myopic and damaging policies are being complemented by reports released by the United States Trade Representative (USTR) on Chinese shipbuilding. The findings of the report call for levying additional fees over bizarre accusations of China “targeting global maritime and logistics to undercut U.S. commercial interests”.

The fallacy of portraying China as an economic security risk clearly shows the Trump administration’s proclivity for militarization and politicization of global economics and trade with significant implications for both international relations and Sino-U.S. ties. When closely examined, American policy-making demonstrates a complete lack of perspective, strategic thinking of global leadership or a universal vision for peace and prosperity.

Brazen politicization and militarization on display

There is evidence to suggest that the Trump administration is not concerned about the health of the global economy, its interconnectedness, its ability to generate regional prosperity or the multilateralism that includes the Global South. Instead, his administration’s measures indicate a deliberate attempt to increase American so-called political capital and secure Washington D.C.’s narrow parochial interests. Chinese shipbuilding, for example, does not pose any threat to the global market or interfere with the actual functioning of the international economy. China’s shipbuilding has been concomitant with its promotion of apolitical maritime trade in key regions, for example, China-ASEAN trade reached $982.34 billion in 2024, according to China Customs statistics.

However, the USTR report makes no such references and instead calls for the imposition of duties and import restrictions on Chinese products. The truth is that the U.S. is insecure about China’s domestic economic rise, which according to the Qiushi Journal, is anchored in stable foundations, strong resilience and vast potential for long-term growth. Also, China’s domestic growth has not been at the expense of any other country, but is driven by fostering innovation, liberalization of industries, promotion of private sector participation and attracting foreign investment in high-tech and green energy sectors.

It is hence clear, that Trump’s policy measures vis a vis China are not about economics but an attempt to undercut its peaceful rise. In fact, it is America’s obsession with militarization, which is part of the Trump administration’s strategic calculus.

Take the example of investment controls on China’s shipbuilding enterprise. The controls demonstrate that the U.S. is obsessed with maintaining military superiority over China and seeks to limit Beijing’s potential in military logistics. The investment barriers ignore the fact that the rise of China’s shipbuilding industries accelerated the development of supporting global industrial chains, creation of job opportunities and promotion of international research and development on low-carbon and zero-carbon sustainable, environment friendly development. Note further, that the USTR’s assessments which include critiques on China’s dominance in shipbuilding and maritime logistics are geared at weakening Beijing’s global position, given that China’s shipbuilding output now accounts for over 50 percent of the world’s total.

Impact on Sino-U.S. trade relations and beyond

By adopting such myopic, parochial and self-serving policies, the United States is essentially impacting the already complex yet significant U.S.-China trade relationship. The measures adopted in 2025, not only hurt mutual trust and harm the global investment climate but also constitute an intentional move to prop up American companies while discouraging global capital inflows and long-term strategic partnerships such as the Regional Comprehensive Economic Partnership (RCEP) which resulted in trade between China and its member states amounting to $1.67 trillion from January to November in 2024. Trump’s policies and brazen politicization of trade, however, disrupt the international business environment, with American sanctions on Chinese firms like Huawei causing ripple effects in sectors such as semiconductors and consumer electronics, industries in which both the United States and China are intertwined.

The ripple effects of Trump’s senseless politicization and weaponization of trade with China will also manifest as higher global shipping costs, undermining maritime trade that Trump has so ironically sought to promote in the Asia-Pacific, and contributing to increased costs for businesses and countries already benefiting from Chinese imports. This constitutes trade disruption, which neither China nor any other country which advocates for a more integrated global order should tolerate.

Right to respond

Based on clear and irrefutable evidence, the United States is politicizing and militarizing international economic well-being for its own narrow parochial interests. Its investment controls on China lack merit, its reports released by the USTR are factually incorrect and its trade measures are geared at establishing American supremacy, military and economic might. There is no consideration for global harmony or multilateral trade which has been the hallmark of international relations for decades.

As a result, China as a sovereign state which is being unjustly targeted has every right to respond with countermeasures. Instead, the United States was “shirking responsibility and shifting blame”, as rightly mentioned by China’s Ministry of Commerce. China’s argument is also on merit as unilateral tariffs are a brazen violation of the central tenets of the World Trade Organization. It undermines the significance of global trade and revenue generation which impacts millions of people across the world. Such deliberate targeting while ignoring China’s positive contributions towards global trade and economic development constitutes ignorance on the part of the United States.

Such politicization and weaponization of economic and trade relations will disrupt Sino-U.S. relations as well as destabilize global markets. Advocates of free trade must hold the Trump administration accountable for its blatant unilateralism.

Hamzah Rifaat Hussain, a former visiting fellow at the Stimson Center in Washington and former assistant researcher at the Islamabad Policy Research Institute, is an anchor at ThinkTech Hawaii.

The article reflects the author’s opinions, and not necessarily the views of China Focus.