TRADE WAR
The Economic and Political Shocks of Unilateral Tariffs When global trade systems were built after World War II, they relied on a simple premise, economic ties build trust among democratic allies. Recent trade approaches have flipped that model, replacing shared stability with transactional bargaining. Massive tariff threats against long-time partners like Canada, Mexico, the European Union, and South Korea have altered the baseline of international business. Tariffs do not operate in a vacuum; they act as immediate disruptions to global supply chains. When sudden 25% tariff threats hit South Korean export sectors before settling at 15%, the resulting shockwaves rippled through corporate boardrooms worldwide. European, Japanese, and South Korean industrial firms absorb massive restructuring costs to build duplicate supply networks, aiming simply to protect themselves from volatile foreign trade policy. Domestically, these import duties act as internal taxes, pushing up raw materi...