global trade

Global trade is currently characterized by significant disruption and evolving geopolitical strategies. The United States, under former President Trump, initiated a trade war with widespread tariffs, prompting other nations to seek new trade relationships to protect the existing global trading system. For instance, the European Union moved to strengthen ties with South America's Mercosur bloc. Simultaneously, tensions are rising over industrial policies, particularly in high-tech sectors. China has publicly rejected a report from the OECD that highlighted substantial government subsidies to its firms, deeming it 'one-sided.' This dispute underscores how industrial policy has become a major point of contention in international commerce. These developments highlight the current fragility of the global trading system and the ongoing efforts by various economic powers to navigate and reshape trade dynamics in response to protectionist measures and state-backed industrial strategies.