The trade war between the US and China has become a major event in the global economy in recent years. After promises from the Trump administration in 2024 to limit China’s economic influence, tariffs surged: by October 2025, the average US tariff on Chinese goods hit a record 51%, while Chinese tariffs on US goods reached nearly 33%.
Prices for electronics, furniture, clothing, and toys have significantly increased, costing the average American family an extra $1000–1300 per year. At the same time, the technological rivalry centers on semiconductors: the US has banned the export of advanced AI chips and chip-manufacturing equipment, particularly ASML’s products, to China. China now lags 5–10 years in state-of-the-art chip production.
Taiwan plays a critical role in this confrontation, hosting leading semiconductor manufacturers. The US is pressuring Taiwan to relocate production to America, but Taiwan defends its sovereignty and avoids direct concessions. Meanwhile, China regards Taiwan as a crucial element in its strategy.
Negotiations between the US and China focus not only on tariff reductions but also on structural issues: intellectual property, subsidies, and market access. China is also seeking to leverage potential political shifts in the US to advance its interests on Taiwan and expand investments into the US market.
Despite tensions, the world has not split into two clear blocs. Instead, a multipolar system with overlapping alliances is emerging. The resolution of major disputes and the ability to compete in strategic sectors will shape the global economic and technological landscape of the future.
