Causes and Impact of Sino-US Trade Confliction and US Inflation

Abstract

One of the primary areas of ongoing research concerns the trade tensions between the United States and China, and the trend towards trade decoupling between these two nations. Scholars are increasingly examining the evolution of this trade dispute, its impact on the Chinese market, and the policy responses that the Chinese government should adopt. However, there remains a research gap with regards to the impact of trade tensions between the US and China on domestic inflation in the US, as well as the ability of the US government to take appropriate countermeasures. To examine the influence of US-China trade tensions on US inflation, this paper examines macroeconomic and microeconomic data from the last five years. It summarizes the local irrationalities stemming from the current inflation issue, looking at the government’s, society’s, and people’s livelihoods’ perspectives, and investigates viable measures from government, enterprise, and personal financial perspectives. It is hoped that this study will aid the expansion of Sino-US trade and the successful alleviation of the inflation crisis in the United States, while also broadening the perspectives of future scholars.