Trade wars between major countries, such as the United States and China, have created a significant impact on the global macro economy. Tariff policies imposed by each country trigger uncertainty in the international market. One of the main impacts of this trade war is an increase in the costs of goods and services. The imposed tariffs cause companies to have to increase the selling prices of their products, potentially reducing consumers’ purchasing power. Furthermore, the trade war also had implications for decreasing global trade volume. When countries impose high tariffs, many companies are forced to look for alternative sources of goods or stop certain exports and imports. This resulted in stagnation in the growth of international trade. According to the World Trade Organization (WTO), global trade volumes may be affected, resulting in slower economic growth. In the investment sector, the trade war adds uncertainty to the international investment climate. Investors tend to hold back their capital because they are worried about market volatization that occurs due to political and economic tensions. The decline in foreign direct investment (FDI) is slowing innovation and infrastructure development in many countries, impacting their ability to compete in global markets. Another impact is the strengthening of certain currencies. For example, demand uncertainty may cause investors to shift to currencies that are considered safer, such as the US dollar. This has the potential to harm countries that depend on exports, because their goods become more expensive on the international market. Additionally, a trade war could increase the risk of a global recession. In many countries, reductions in trade and investment can weaken economic growth. If large countries such as the US and China experience a slowdown, the impact could be felt throughout the world, especially in countries that depend on exports to these two countries. Community welfare is also affected. In countries affected by trade wars, increasing prices of goods can reduce people’s real income. The multiplicative effects of this reduction in purchasing power can lead to increased levels of poverty and economic inequality. Lastly, trade wars encourage countries to look for alternative markets and strengthen bilateral relations. Many countries are starting to see opportunities to develop new trade cooperation, seeking to reduce dependence on certain economic powers. This could be a positive step in diversifying the global economy, but it will take time and effort. Thus, the impact of the trade war on the global macro economy is very broad and varied. From rising prices, reduced trade, to the risk of recession, the challenges facing countries around the world require serious attention from policymakers to manage and adapt to these new dynamics.