The trade war between the US and China can only fill us with dread. How will it affect our daily lives? Will it result in a new global recession or even geopolitical chaos?

To orient ourselves in this mess, we should bear in mind some basic facts. The trade conflict with China is just the culmination of a war which began years ago when Donald Trump fired the opening shot aimed at the biggest trading partners of the US by deciding to levy tariffs on the imports of steel and aluminium from the EU, Canada and Mexico.

Trump was playing his own populist version of class warfare: his professed goal was to protect the American working class (are metal workers not one of the emblematic figures of the traditional working class?) from “unfair” European competition, thereby saving American jobs. And now he is doing the same with China.

Trump’s impulsive decisions are not just expressions of his personal quirks, they are reactions to the end of an era in a global economic system. An economic cycle is coming to an end – a cycle which began in the early 1970s, a time when, what Yanis Varoufakis calls the “Global Minotaur”, was born. The monstrous engine that was running the world economy from the early 1970s to 2008.

By the end of the 1960s, the US economy was no longer able to continue the recycling of its surpluses to Europe and Asia: its surpluses had turned into deficits. In 1971, the US government responded to this decline with an audacious strategic move: instead of tackling the nation’s burgeoning deficits, it decided to do the opposite, to boost deficits. Who would pay for them? The rest of the world. How? By means of a permanent transfer of capital that rushed across the two great oceans to finance America’s deficits.

These products may become more costly in the trade war Show all 9 1 /9 These products may become more costly in the trade war These products may become more costly in the trade war Orange Juice, which Florida is known for, may soon be subject to import tariffs Getty Images These products may become more costly in the trade war The EU lists 'footwear with outer soles of rubber or of plastics and uppers of plastics' amongst the goods that may soon be subject to import tariffs Getty Images These products may become more costly in the trade war Cosmetic products, such as US brands Maybelline, MAC and Avon, may soon be subject to import tariffs Getty Images for Rebekka Ruetz These products may become more costly in the trade war Jeans, the all-American trousers, are on the EU's list of goods that may be subject to import tariffs Getty Images These products may become more costly in the trade war Bourbon whiskey is on the EU's list of over 100 US products that may be subject to import tariffs Getty These products may become more costly in the trade war US peanut butter products are on the EU's list of goods that may soon be subject to tariffs Getty Images These products may become more costly in the trade war US motorcycles, such as the Harley-Davidson, may soon be subject to import tariffs Getty Images These products may become more costly in the trade war Cranberry products, a major US crop export, may soon become more expensive Getty Images These products may become more costly in the trade war All tobacco products are on the EU's list of US goods that may be subject to import tarifs AFP/Getty Images

This growing negative trade balance demonstrates that the US became a non-productive predator. In the last decades, it had to suck up a $1bn daily influx from other nations to buy for its consummation and is, as such, the universal Keynesian consumer that keeps the world economy running. (So much for the anti-Keynesian economic ideology that seems to predominate today.) This influx, which is effectively like the tithe paid to Rome in antiquity, or the gifts sacrificed to the Minotaur by the Ancient Greeks, relies on a complex economic mechanism: the US is trusted as the safe and stable centre, so that all others, from the oil-producing Arab countries to western Europe and Japan – and now even China – invest their surplus profits in the US.

Since this trust is primarily ideological and military, not economic, the problem for the US is how to justify its imperial role. It needs a permanent threat of war, offering itself as the universal protector of all other “normal” (that is, not “rogue”) states.

Since 2008, however, this world system has been breaking down. During the Obama years, Paul Bernanke, chair of the Federal Reserve, gave another breath of life to this system. Ruthlessly exploiting the fact that the US dollar is the global currency, he financed imports by printing money fast. Trump has decided to approach the problem in a different way: ignoring the delicate balance of the global system, he has focused on elements which may be presented as “injustice” for the US – gigantic imports reducing domestic jobs, for example.

But what Trump decries as “injustice” is simply part of a system which has profited the US; the US were effectively robbing the world by importing stuff and paying for it by debts and printing money.

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Consequently, in his trade wars, Trump cheats: he wants the US to continue to be a global power but refuses to pay even the nominal price for it. He follows his “America first” principle, ruthlessly privileging US interests, while still acting as a global power.

Even if some of the US arguments against China and its trade may appear reasonable, they are undoubtedly one-sided: the US profited from the situation decried by Trump as unjust, and Trump wants to keep profiting also in the new situation. The only way out left for others is on some basic level unite to undermine the central role of the US as a global power secured by its military and financial might. One should be as ruthless as Trump in this struggle. Our predicament can only be stabilised by the collective imposition of a new world order no longer led by the US. The way to beat Trump is not to imitate him with “China first”, “France first,” and so on, but to oppose him globally and treat him as an embarrassing outcast.

This does not mean that the sins of those who oppose the US should be forgiven. It is typical that Trump proclaimed he is not interested in the democratic revolt in Hong Kong, dismissing it as China’s internal affair. While we should support the revolt, we should just be careful that it will not be used as an argument for the US trade war against China – we should always bear in mind that Trump is ultimately on the side of China.

So should we nonetheless be glad that the ongoing trade war is just an economic war? Should we find solace in the hope that it will end with some kind of truce negotiated by managers of our economies?