Why It Matters

We’ve Been Looking At Trade All Wrong

Mar 19, 2025

Edward Alden, a senior fellow specializing in U.S. economic competitiveness and trade, dives into the evolution of trade and its growing significance beyond mere goods exchange. He explores how trade has reshaped foreign policy and national security dynamics, and the consequences of U.S. nationalism on global norms. Alden discusses the cost implications of a return to domestic manufacturing and highlights the vulnerabilities of global supply chains exposed by the pandemic, ultimately illustrating how trade policy impacts economic stability and global relations.

32:52

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Episode guests

Edward Alden

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Quick takeaways

Modern trade has evolved into a complex system that influences not only economic conditions but also international relations and security.

The shift from a bipartisan consensus on trade to divergent views in U.S. policy reflects growing concerns about its implications for the economy and global interdependence.

Deep dives

The Evolution of Trade Dynamics

Trade plays a critical role in shaping the global economy, influencing everything from international relations to product availability. In modern times, the nature of trade has evolved from a straightforward exchange of goods between countries to a complex web where production is fragmented across multiple nations. For instance, modern devices often combine components sourced from different countries, demonstrating that trade is not simply about exporting and importing but also about global interdependence. The changing landscape of trade is essential as it shapes not only economic interactions but also political relationships, as nations rely on one another for essential goods and services.

Intro

3min

The Evolution of Global Trade

10min

Examining Economic Self-Sufficiency and Trade Dependence

2min

The Cost of 'Made in America': A Look at Modern Manufacturing

2min

The Complex Domino Effect of Global Trade Disruptions

3min

Trade's Impact on Security and Global Relations

14min

There was once a broad consensus in Washington that trade was a force for good—a way to connect, grow, and prosper. But today, trade has evolved into something much bigger than just the exchange of goods. It’s become a powerful tool to rewrite the rules of foreign policy, reshape how the United States is viewed by the rest of the world, and steer us toward an increasingly uncertain future. When did this change begin, and where did we go off course?

This season, Why It Matters is taking you through the ins and outs of trade. In this episode, we’re diving into the history books to learn what can the past tell us about the future of U.S. trade policy.

Featured Guest

Edward Alden, senior fellow specializing in U.S. economic competitiveness, trade, and immigration policy

For an episode transcript and show notes, visit us at https://www.cfr.org/podcasts/weve-been-looking-trade-all-wrong