This chapter explores the rising global trade tensions sparked by U.S. trade measures, highlighting the reactions of countries like China, Japan, Brazil, and the EU. It emphasizes the need for a new trade framework that addresses current challenges and fosters international cooperation and security.
With his recent moves, Donald Trump has plunged the global economy into a new era of mercantile competition. He slapped tariffs on numerous trading partners even as he finalized new deals with others, such as Japan and the EU. The US president’s executive order last month announcing the tariffs said they were designed to reduce America’s trade deficit. As the Washington Post reports:
Since returning to office, Trump has raised US tariffs to their highest level since the 1930s, with an average rate of about 17% on nearly 45% of all imports. New 25% tariffs have been announced on India, with 50% on Brazil and copper imports. Although the administration has signed framework deals with key partners such as the EU and Japan, analysts warn these agreements remain fragile and insufficient to offset rising input costs and legal challenges.
The consequences of these sweeping tariff increases are being felt deep within the mechanics of global trade. As costs rise and agreements remain uncertain, businesses are struggling to maintain operational stability. Nowhere is this more evident than in global supply chains.
