Trade Protectionism and the U.S.–China Trade War in the 21st Century: Drivers, Consequences and Policy Responses

Abstract

The 21st century has witnessed trade protection again, and the U.S. China trade war has been the best illustration of this. In this paper, a fresh look at the conflict is made in reference to the latest data until 2025. It relies on a qualitative case study which is based on trade statistics, policy papers and recent research. It is aimed at observing why protectionist regulations increased and how they transform international trade. The research concludes that tariffs are not only applied to stabilize trade but also to maintain technology superior, respond to supply chains and acquire political influence. Tariffs as well increase consumer prices, slack growth, damage export trade and undermine global trade regulations. The changes in the supply-chain, the industry policies implemented by the government and the weak World Trade Organization have evidence. This demonstrates why it is necessary to have improved cooperation and stronger nations. The paper concludes with the suggestions of how trade rules can be made more flexible.