Analysis of the Impacts and Counterstrategies of the U.S.-China Trade War Based on David Ricardo’s Model

Abstract

Against the backdrop of deepening economic globalization, U.S.-China trade relations have emerged as a central issue in international trade. In recent years, research on the U.S.-China trade war has made significant progress, as scholars have analyzed its causes and impacts from multiple dimensions—including trade imbalances, industrial competition, and political factors—providing rich perspectives for understanding this complex economic phenomenon. However, existing research predominantly focuses on descriptive analysis and policy evaluation. A significant gap remains in systematic studies, rooted in David Ricardo’s theory of comparative advantage, that examine the losses suffered by both China and the United States due to tariff measures, as well as the impact of these measures on the global trade system. This study centers on the core theme of “The Economic Impact of Tariff Measures in the U.S.-China Trade War from the Perspective of the David Ricardo Model,” aiming to deeply analyze two critical questions: First, how tariff measures undermine core assumptions of the Ricardo model—such as free trade and fixed factors—thereby distorting the international division of labor based on comparative advantage. Second, what specific losses the escalating tariff barriers impose on China-U.S. trade volumes, industrial development, consumer welfare, and producer surplus, and whether they lead to a significant decline in global resource allocation efficiency. This study holds significant theoretical and practical implications. Theoretically, by revealing how tariff measures undermine classical trade theory assumptions, this study further validates the explanatory power of free trade theory in today’s complex trade environment and offers new perspectives for the development of international trade theory. Practically, the findings provide theoretical grounding for China, the United States, and other countries in addressing trade frictions, warn against the risks of trade protectionism, and advocate for a return to rational cooperation among countries to improve the global trade governance system.