This thesis analyzes the inherent significance of trade wars in a practical as well as in a theoretical sense. The preliminary intention of the present research is to provide three different understandings of the trade war concept. Firstly, a general understanding of trade wars is introduced, primarily focusing on the technical aspects of the issue and its political and economic dimensions. Secondly, trade wars are viewed in a specific case study context: the Japanese-American commercial relations and their bilateral trade disputes that escalated into trade wars are investigated, focusing on semiconductor and biotechnology industries. Thirdly, the trade wars concept is correlated to Raymond Vernon&amp / #8217 / s Product Cycle theory, introducing the theoretical understanding of trade wars. The combination of these research themes endeavors to establish whether trade wars are primarily fought between successful industrial states over leading strategic core industries, those that are knowledge-intensive, and produce high-value-added products.