CURRENT STATE OF US - CHINA TRADE AND ECONOMIC RELATIONS AND ITS IMPACT ON THE GLOBAL ECONOMY

This article examines the current state of trade and economic relations between the United States and China (2025 - 2026) against the backdrop of repeated tariff escalations, a landmark Supreme Court ruling on tariff authority, and a fragile bilateral truce. Drawing on data from the IMF, the WTO, and specialized trade-policy trackers, the paper analyzes how the confrontation between the world’s two largest economies is reshaping global trade volumes, growth forecasts, supply chains, and the multilateral trading system. The findings suggest that although both sides have avoided full decoupling, the accumulated uncertainty continues to weigh on global trade growth and to accelerate the diversification of supply chains away from bilateral dependence.