US-China Trade War Truce Masks Risk of Escalating Economic Conflict

The U.S.-China trade war has cooled from its 2018 peak, but the apparent calm is deceptive. President Donald Trump's tariff threats and deficit-driven rhetoric still surface periodically, while underlying tensions between the world's two largest economies continue to simmer. Neither Washington nor Beijing has taken steps to prevent a new outbreak of hostilities, leaving global markets vulnerable to sudden shocks. The current lull has shifted public attention to other crises, but the risk of an economic conflict of epic proportions remains. History suggests such economic battles can spill over into real-world confrontations, making this a critical issue for businesses and policymakers worldwide. The takeaway: don't mistake a temporary truce for lasting peace.