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Why the Economic Disruption From Trump’s Tariff War Will Be Hard to Reverse

The New York Times's profile
The New York Times
1h ago

President Trump's actions have significantly disrupted the global economic order, creating changes that are difficult to reverse due to the resulting shifts in international alliances and economic relations. Allies are forming new trade and security partnerships excluding the U.S., as trust in American leadership erodes and countries like China seize opportunities to expand their influence. Trump's policies have also weakened international institutions and emboldened autocratic leaders, further destabilizing the established global system. The administration's cuts to federal research funding threaten America's scientific and technological edge, potentially leading to a brain drain as researchers seek opportunities elsewhere. Even if future administrations seek to reverse these changes, the institutional damage and altered global dynamics present significant challenges to restoring the previous order.

Why the Economic Disruption From Trump’s Tariff War Will Be Hard to Reverse

President Trump's first 100 days saw aggressive moves like provoking trade wars, withdrawing from treaties, and signaling reduced defense commitments to Europe, leading to a profound shift in the global economic landscape.

The erosion of trust in the United States as a reliable ally is prompting countries to forge new alliances, such as the European Union and South America's creation of a large trade zone and Canada's efforts to join Europe's military initiatives.

China is capitalizing on the U.S.'s retreat from global leadership by strengthening its position as a defender of free trade, with emerging economies in Latin America, Asia, and Africa increasingly aligning with Beijing.

The administration's dismantling of government research funding and infrastructure risks undermining the U.S.'s scientific and technological leadership, as cuts in grants and resources drive talent to other countries.

Despite potential political changes, the deeply rooted economic and geopolitical shifts initiated by Trump's policies may be challenging to reverse, as the international community adapts to a new world order less reliant on American leadership.

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