The US-China trade war has been in the spotlight since 2018. However, many papers have only examined the economic issues arising from the trade war without paying much attention to the impact it has on the environment. This paper focuses on the environmental impact of the trade war on the two direct participants, which are China and the United States. It is concluded that the main environmental impact suffered by China is the increase in carbon emissions. This has led to an increase in domestic temperatures, which further leads to economic and social problems for vulnerable populations. This can be addressed through two policies, which are using green premium to implement targeted policy and investing more into the research of the new energy industry. Furthermore, the decrease in soybean production in the United States has led to environmental problems of over-nutrition and increased demand for blue water, which can further lead to water scarcity, triggering a reduction in farmers' income and a decrease in GDP. In this regard, different regulatory standards set in each state to monitor water quality can protect and enhance water quality in watersheds. in addition, investing money in controlling nutrient overload and water scarcity is also an effective measure. Moreover, this paper gives policy recommendations that governments could take to deal with difficult situations, and an assessment of the different policies mentioned.