COMMENTARY / Japan

This is what a real trade war looks like

China has studied and copied Trump’s strategies and is using them in retaliation for U.S. actions

The U.S.-China trade war has escalated as both sides use economic leverage, with China asserting dominance over rare earths to retaliate against U.S. tariffs, while the U.S. seeks a collective global response and long-term strategy to reduce dependency on China's supply chains. | REUTERS

By Brad Glosserman
Contributing writer

Oct 21, 2025

Yes, Virginia, there really is a trade war.

Ask U.S. President Donald Trump, who blithely responded, “Well, you’re in one now,” when asked by a reporter last week if we are in for a sustained U.S.-China trade war. Worse, the stakes seem to be rising. As Trump explained, “We have a 100% tariff (on Chinese products). If we didn’t have tariffs, we would be exposed as being a nothing.”

This sorry state of affairs is the product, most immediately, of Trump’s twin beliefs that “‘tariffs’ is the most beautiful word to me,” and that “trade wars are good and easy to win.” But there is considerably more to this moment than the U.S. president’s odd aesthetic and misguided economics.