In 2025, President Trump’s sweeping tariffs—10% on all imports, 30% or more for China—upended decades of global trade. Intended to revive U.S. manufacturing and shrink trade deficits, these measures quickly triggered a wave of retaliation. China, the EU, and other key partners fired back with their own tariffs, while BRICS nations accelerated efforts to bypass the dollar and deepen regional trade. At home, Americans felt the squeeze as prices rose on everything from cars to groceries. Studies estimate the average household pays nearly $3,000 more per year, while small businesses and farmers face shrinking margins and vanishing markets abroad. Even protected industries find that higher input costs and uncertainty offset short-term gains. Globally, supply chains are splintering, investment is stalling, and emerging economies risk sliding backward as trade slows. The dollar’s dominance is now openly challenged, and new alliances are forming around rival payment systems. Experts warn that rather than restoring prosperity, this new protectionism risks permanent fragmentation—a world divided by tariff walls, competing currencies, and shrinking opportunities. Whether leaders step back from the brink or entrench the divide will define the decade ahead.
