The Impact of Trade Wars on Global Supply Chains: A Case Study of the US-China Conflict

Abstract

Trade conflicts are relevant to global supply networks because they shift industry patterns, pricing strategies, and global trade models. This paper assesses the broad impacts of the trade war between the United States and China. This research establishes that diversification of the supply chain to the southeast Asian nations eased the dependence on China by 35 %, but policy risks led to time costs, which increased the supply chain costs by an average of 15 %. Those companies that applied the most progressive technology solutions, including block chain, for instance, experienced a 20 % decrease in inventories and a 15 % increase in delivery rates, thus proving the effectiveness of digital tools. The study indicates that tariff barriers, policy uncertainties, and fluctuating trade partnerships forced companies to restructure their business models, explore new supplier options, and implement robust strategies. The research adopts a dualistic approach to explaining some profound ideas about managing risks and enhancing versatility in supply networks. These findings suggest a practical strategy for governments and companies to enhance supply chain resilience and sustain operations amidst the increasing volatility in the global economy and political landscape.