In the recent decade, trade wars have become a major topic of discussion in the global economic system. Trade wars arise when countries implement tariffs, import restrictions, and other protectionist policies to safeguard their economic interests and correct trade imbalances. Especially, trade conflicts between economically powerful nations have led to widespread and long-term impacts on the global economy. The main objective of this study is to analyze the causes, effects, and economic changes resulting from global trade wars. This research uses a secondary data method. Information has been collected from World Bank and IMF reports, government records, and various research articles. Through analytical and descriptive methods, the economic impacts of trade wars have been examined. The findings of this study indicate that trade wars significantly alter international trade activities. An increase in tariffs leads to a rise in the prices of goods, placing an additional burden on consumers and causing inflation. Furthermore, trade wars adversely affect global supply chains. Multinational companies tend to relocate production units to other countries or search for new markets. This results in higher production costs and increased uncertainty in global trade. A decline in Foreign Direct Investment (FDI) and reduced investor confidence are also major consequences. This situation hampers global economic growth. For developing countries like India, trade wars create mixed effects. On one hand, a decline in global demand can negatively impact exports; on the other hand, new market opportunities may arise in certain sectors. Particularly, India may emerge as an alternative manufacturing hub. However, increased import costs and exchange rate volatility remain key challenges. This study concludes that, in the long run, global trade wars are harmful to global economic integration. Therefore, countries need to reduce protectionist policies, strengthen multilateral cooperation, and promote free trade agreements. Only through balanced trade policies and international cooperation can global economic stability and sustainable development be achieved.