go to top
Donald Trump after attending a joint press conference with Chinese leader Xi Jinping in Beijing U.S. President Donald Trump after attending a joint press conference with Chinese leader Xi Jinping at the Great Hall of the People, Beijing, Nov. 9, 2017 (AP photo by Andy Wong).

Trump’s Trade Wars, and Now COVID-19, Are Unraveling Trade as We Know It

Tuesday, Aug. 18, 2020

The global economic map is reshuffling, and predictions abound on where the pieces will land. As companies scramble to protect themselves from U.S. President Donald Trump’s trade wars, the growing technology rivalry between the United States and China, and the disruptions caused by the COVID-19 pandemic, will the long-promised “reshoring” of manufacturing back to higher-wage countries finally take place? Will the U.S. and China “decouple” their economies, particularly for the technologies of the future? If so, how will Europe, Japan and others respond?

For the moment, the big winner is uncertainty. We have moved from a world in which companies and their customers knew the rules of the game of global commerce, to one where many decisions are fraught with risk. Now, on top of the usual uncertainty inherent in predicting economic or consumer trends, companies face added political, legal and medical uncertainties that will inevitability discourage risk-taking, dampen investment and harm economic growth. Some companies will respond better than others to that uncertainty—and perhaps profit handsomely in the process. But many others will be faced with all but impossible choices. ...

To read more,

enter your email address then choose one of the three options below.

Subscribe to World Politics Review and you'll receive instant access to 10,000+ articles in the World Politics Review Library, along with new comprehensive analysis every weekday . . . written by leading topic experts.