As the world's two largest economies, the intensity of trade and economic competition between China and the United States has increased dramatically over the last few decades. China is the United States' largest importer, third-largest export market, and second-largest trading partner. Even though the US and China's foreign policy choices influence this economic tug of war, it affects the entire world in a broader sense. The Tit-for-Tat strategy hampered negotiations and has ramifications for economies around the world. To protect their economic positions and take other positive steps, both parties have gradually imposed opposing tariffs. Trade wars, both direct and indirect, have created a kind of economic cold war between these two massive economies. The world's developing and underdeveloped economies have seen the consequences of these economic conflicts on multiple fronts. In this study, we look at how the US-China trade war has affected the world, as well as the actions of both governments and the effects of tariffs on developed and developing countries, and our research must achieve the following objectives: (i) To comprehend the evolution of the US-China trade war; (ii) To understand the trade conflict from both China's and America's perspectives; and (iii) Consider how the trade war affects both developed and developing countries.