The start of the trade war between the United States and China in 2018 has changed the stage of international relations. Growing tariffs by both the American and Chinese governments has threatened the stability of international trade and multilateral cooperation. Governments have framed trade deficits between United States and China as cause of this trade war. Could growing trade deficits be the only explanation for rising tensions in trade between the United States and China? This study aims to research the causes of the trade war between the United States and China on other grounds than just growing trade deficits. As two major world economies, the trade war between the United States and China has vast complications for the global economy. Growing geopolitical tensions between the United States and China could spark another cold war for the world as this forces other countries to choose between two spheres of global economic power. Tensions such as trade wars are prone to escalation if the future trade outlook between the United States and China becomes dark. This study gives a deeper insight into the bilateral trade relations between the United States and China and the implications of this relationship for the global economy.