In our hostile environment, it is every nation for itself. The lubricant of economies — globalisation — is on its last breath. While just yesterday, nations collaborated to draft laws and regulations they pledged to uphold, they are now breaking apart past alliances and consensus. Through subsidies and tariffs, they are scrambling to promote their own industries while undermining those of their neighbours and former partners. No longer a temporary response to a crisis, protectionism has become a structural element of the new global economy.
One must not place the blame solely on Trump, as trade barriers were being erected well before his return to the White House in 2025 — primarily against China, accused of flooding the world with cheap electric vehicles, steel and other finished products. South Korea and Vietnam took action as early as last February, under pressure from national industries crushed by Chinese competition. Indonesia moved to raise taxes on all Chinese goods wrapped in nylon. Across the world, Mexico launched anti-dumping investigations into Chinese chemical and plastic products. Canada, in October 2024, imposed 100% tariffs on Chinese electric vehicles and 25% on Chinese steel and aluminum. That same month, the European Union — once the high priestess of free trade — introduced tariffs of up to 35.3% on imported Chinese electric vehicles. Even Russia, China’s “special partner,” legislated to tax Chinese cars, which now make up half of new sales compared to just 10% in 2022.
According to Global Trade Alert, a Switzerland-based trade monitor, 4,650 import restrictions were in place across G20 economies as of March 2025 — ten times more than in 2008. This is a deep-rooted trend, one that had already taken hold under President Biden. In fact, Global Trade Alert reports that import restrictions now affect 90% of the 5,200 product categories classified in the U.S., compared to just 50% at the start of Trump’s first term. The Tax Foundation, a U.S. think tank, warns that American import tariffs have returned to 1946 levels — ”the highest in 90 years,” according to Fitch Ratings.
That being said, Trump’s second term heralds an outright explosion of tariffs, taxes and trade barriers. A massive wave of trade realignment is sweeping across the globe. Even Trump’s close advisers are struggling to rein in his enthusiasm, as he publicly regrets having been moderated during his first term. He is now considering a universal tariff on all goods from all countries, making tariffs the defining policy of his presidency. One way or another, we are on the brink of a foundational escalation — a “Liberation,” as Trump calls it — set to start yesterday April 2, 2025.
The goal of this protectionist surge is to fill the Treasury’s coffers and restore lost jobs. According to the U.S. administration, only a drastic reduction in the trade deficit can reindustrialise the country and better serve its blue-collar workers. This premise, however, is flawed, as it places disproportionate importance on industrial jobs, even though the service sector has become the primary source of employment.
To achieve its objectives, the administration is intervening directly and massively to reshape the economy. This is ironic — and highly contradictory — for both Trump and his electorate, who have long advocated for reducing the power of the state. And yet, here is the state, now more powerful than ever, expected to restore Americans’ “freedom” and economic sovereignty.
For more on the author, Michel Santi and his exclusive opinion pieces visit his website here: michelsanti.fr
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