editor
The ongoing trade war between the United States and China continues to shake global markets and test the resilience of international economic diplomacy. With tariffs, sanctions, and strategic moves in technology and defense, both powers are engaged in a high-stakes game that will influence the global order for decades to come.
A Pricey Power Struggle
The U.S., under Trump’s strategy, is attempting to curb China’s unstoppable rise. Washington’s goal is to reassert dominance in defense and technology by slowing Beijing’s ascent. However, raising tariffs to 125% and beyond has not only strained relations but also boomeranged back to hurt American consumers. Domestic prices on goods like washing machines soared—costing U.S. consumers billions.
China, meanwhile, frames these moves as irrational and coercive. It argues that America’s tactics violate international norms and amount to economic bullying. The reality? Such tariffs are unsustainable. The global economy—and even U.S. domestic stability—can’t afford prolonged escalation.
Dollar Dilemma and Global Trade Shifts
Trump’s aim to eliminate the trade deficit is also problematic. If the U.S. stops supplying dollars to the world by halting trade deficits, the dollar risks losing its reserve currency status. For the dollar to remain dominant, it must remain widely available—something impossible under zero-deficit policies.
Moreover, China’s economy no longer relies heavily on exports. With domestic consumption growing and new international markets opening up, Beijing can pivot away from U.S.-dependent trade flows. If pushed, China could flood global markets with cheaper goods, further increasing its global share.
A World Caught in the Crossfire
This isn’t just a bilateral issue. Europe’s energy dependence on Russia has already exposed the fragility of sanctions. Trade restrictions meant to hurt Russia backfired, hitting European economies harder in some cases. A similar miscalculation in the U.S.-China trade war could unsettle global supply chains and worsen inflation worldwide.
As BRICS nations push for a new world order with a shared currency, America’s financial dominance is under growing threat. Trump has already issued direct warnings to BRICS nations, revealing just how seriously Washington views this challenge.
Turkey’s Place in the New Order
For countries like Turkey, these global tensions offer both risk and opportunity. On the one hand, rising Chinese exports may hurt Turkish producers who can’t compete on price. On the other hand, shifting global supply chains could open doors for Turkish exporters—if Ankara can position itself wisely.
Turkey’s high inflation and artificially low currency limits its competitiveness. Yet, being integrated into new supply networks could turn the tide. The key lies in innovation, technology, and strategic diplomacy.
Conclusion: Clash of Giants, Ripple Effects for All
The U.S.-China trade war is more than a spat over tariffs—it’s a clash of two systems. Washington wants to maintain its waning dominance, while Beijing is shaping a new global narrative. Though a near-term resolution seems unlikely, some form of compromise is inevitable. The question is: how much economic damage will the world endure before that happens?
