US-China Trade War Expected to Impact Global Economy

Escalating trade tensions between the United States and China are causing significant volatility in global markets, with both countries leveraging tariffs and non-tariff measures to exert pressure. Analysts warn that a prolonged trade war could slow economic growth and harm global investment, given that the U.S. and China together account for a large share of the world economy. China has responded to U.S. tariffs with its own economic countermeasures and is actively seeking to strengthen ties in Southeast Asia, aiming to present itself as a steady partner amid perceived U.S. disengagement. Meanwhile, countries like Malaysia are caught in the crossfire, facing risks from increased alignment with China and potential U.S. trade restrictions on indirect Chinese exports. Despite current hostilities, some experts argue that balanced trade relations and cooperation between the two powers would yield mutual benefits and stability for the global economy. The future trajectory of the U.S.-China economic relationship remains uncertain, with both sides signaling readiness for further escalation if necessary.