Hub Podcasts Will Trump's tariffs cause global instability and hasten China's rise?
Aug 22, 2025
Bill Hawkins, Head of Trade and Investment at Sussex Strategy Group, dives into the impact of Trump's trade policies on global dynamics. He reveals how these policies shift the U.S. from a dominant power to a more ambiguous role in trade. The conversation highlights the growing need for Canada to adapt its strategies in a multipolar world, especially in the Indo-Pacific region. Hawkins also emphasizes the decline in trust between the U.S. and Canada, stressing the urgency for Canadian businesses to reassess trade agreements and navigate investment challenges.
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Globalization Needs A Hegemonic Anchor
- Globalization flourishes under a single dominant hegemon that provides order and public goods.
- Without that unipolar actor, trade disaggregates and middle powers face rising costs and uncertainty.
The Hidden Public Goods Of U.S. Power
- U.S. hegemony created many invisible public goods that lowered friction for global trade and investment.
- Those goods included secure supply chains, common rules, stable dollar assets, and lower risk-management costs.
America Reaped Tangible Returns
- The U.S. benefited materially from providing those public goods via reserve currency status and foreign investment inflows.
- Undervaluing those benefits risks degrading predictability, trust, and economic leverage globally.