As President Donald Trump of the United States provokes almost every nation with trade tariffs, sparking an escalating trade war between the world’s top two economies, concerns arise about the potential collapse of the global order. This situation raises questions about which countries might step in as new leaders.
Cameron Johnson, a senior partner at Tidalwave Solutions, a supply chain consultancy based in Shanghai, commented, “The world order as we’ve known it for the past 80 years is no more.”
With countries worldwide grappling with how to respond to Trump’s broad tariffs â currently on hold at a base rate of 10% for 90 days except for China â some experts suggest that the world may need to turn towards Asia to enhance trade and cooperation, particularly with the increasing unpredictability of the U.S. administration.
Implications of Retaliatory Measures
On April 2, Trump imposed a blanket 10% tariff on nearly all countries, with some nations facing even higher rates. China, for instance, was hit with a 34% tariff.
This move initiated a back-and-forth retaliation with Beijing that quickly intensified.
Despite efforts by many countries to negotiate with Trump, there seems to be no immediate resolution in sight, particularly regarding the unpredictability of the situation.
Recent developments include a temporary halt in tariffs and the escalating tensions with China, which is now facing a 145% tariff rate. China’s Foreign Ministry has pledged to “fight to the end” if the U.S. does not back down. Additionally, China has imposed export restrictions on crucial rare earth elements used in various industries.
Johnson, an American residing in Shanghai, believes that Trump’s recent actions will solidify Chinese dominance in supply chains across Asia and Africa.
He remarked, “Nobody in this region feels that the U.S. shares common values with them anymore. The global landscape is shifting, and those not adapting to these changes will face negative consequences.”
China’s Growing Influence
The extensive list of countries affected by tariffs includes those that the U.S. was attempting to court, such as Vietnam, strategically positioned to connect supply chains between the U.S. and China.
As the trade war intensifies, China is strategically countering the U.S. in vulnerable areas. Andrew Chang provides insights on the rationale behind President Trump’s tariff
