Publication Type
Journal Article
Version
publishedVersion
Publication Date
9-2025
Abstract
‘Trade wars are good, and easy to win,’ tweeted Donald Trump in 2018. The US–China trade war that followed proved otherwise – especially when confronting a major economic power. Yet, can trade wars ever be good? While the academic consensus holds they harm all participants, we argue that under certain circumstances they can produce positive outcomes. Set against the backdrop of the Liberation Day tariffs announced on April 2, 2025, this paper examines the limits of the Ricardian free trade model underpinning the current multilateral trading system, identifies when trade wars may serve strategic goals, and explores alternative rules to address state-capitalist distortions without costly, prolonged conflict.
Keywords
WTO, Trade War, Reform, Comparative Advantage, Liberation Day
Discipline
International Economics | International Trade Law
Publication
World Trade Review
Volume
24
Issue
4
First Page
515
Last Page
519
ISSN
1474-7456
Identifier
10.1017/S1474745625100980
Publisher
Cambridge University Press
Citation
GAO, Henry S. and ZHOU, Weihuan.
(When) can trade wars be good?. (2025). World Trade Review. 24, (4), 515-519.
Available at: https://ink.library.smu.edu.sg/sol_research/4780
Copyright Owner and License
Authors-CC-BY
Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.
Additional URL
https://doi.org/10.1017/S1474745625100980