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American Focus > Blog > Economy > Globalisation will triumph over Donald Trump
Economy

Globalisation will triumph over Donald Trump

Last updated: March 30, 2025 5:47 am
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Globalisation will triumph over Donald Trump
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The upcoming April 2nd, dubbed “liberation day” by former President Donald Trump, is set to unveil his new “reciprocal” tariff plan. This has sparked fears of a deglobalizing world, with concerns that Trump’s tariffs could potentially derail international trade. However, there are arguments suggesting that Trump’s actions will not deal a fatal blow to global trade.

One key point to consider is the diminishing significance of the US in global trade. Despite being the world’s largest economy, the US only accounts for 13% of global goods imports, down from close to one-fifth two decades ago. Even if the US were to cut off all goods imports, many of its trading partners would be able to make up for the lost sales within a relatively short period of time.

Moreover, it is important to note that the US is not the main driver of global trade growth. Europe and China play larger roles in driving global trade, with both economic powers likely to continue advocating for free trade. China, in particular, needs to secure raw materials and global markets to support its growth strategy, while Europe remains committed to trade as a central aspect of the European project.

Additionally, other regions such as India, south-east Asia, east Asia, and the Middle East are expected to contribute to the growth in global trade volumes in the coming years. While governments are looking to boost national supply chain resilience, most nations are not looking to emulate Trump’s protectionist policies.

Furthermore, bilateral and multilateral trade negotiations continue outside the US, with agreements being reached between various countries and regions. Despite the challenges posed by Trump’s tariffs, the long-term trend of global trade growth is expected to continue.

See also  The West is recycling rare earths to escape China’s grip — but it’s not enough

In conclusion, while Trump’s tariffs may impact global trade in the short term, the underlying economic rationale and the importance of trade to the global economy are likely to prevail in the long run. Efficiencies from global trade and the dynamic nature of critical industries will continue to drive overall trade expansion. Despite challenges, the economic motive behind global trade gives it extraordinary staying power.

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