Trump's second term has given the world a wake-up call. Although Trump will likely be gone in four years, the MAGA movement could be long-lived and always four years or less away from taking over again. Even if Trump backs down on tariff's and expansionism during his own term, trust in the U.S. as a military ally and economic partner won't be restored quickly or easily.
What we're now seeing is world military alliances and the economy rewiring themselves, not to be subservient vassals of a hostile U.S., as Trump hopes, but to bypass the U.S.. If trade barriers around the U.S. are going to come and go in an unpredictable manner, then business will respond by building outside of that uncertainty. Manufacture of some low-end products may be onshored to the U.S., but only to meet domestic U.S. demand if and where that is high enough. It doesn't make sense to move manufacturing inside a region with unpredictable trade barriers if it's going to serve a global market.
Take a look at the election results in Canada. What was expected to be an easy majority win for the Conservatives just a few months ago came out as near-majority for the Liberals. Both parties campaigned on anti-Trump measures that include increasing East-West trade/infrastructure within Canada, diversification of the economy to rely more on Asian and European markets, and reduced spending on defence products from the U.S.. This is long-term policy that will make Canada less vulnerable to future MAGA'ruptions, even long after Trump is gone. Trump could do a 180 tomorrow, but the impact of what he's already done will last for decades at the very least.
Trump's second term has given the world a wake-up call. Although Trump will likely be gone in four years, the MAGA movement could be long-lived and always four years or less away from taking over again. Even if Trump backs down on tariff's and expansionism during his own term, trust in the U.S. as a military ally and economic partner won't be restored quickly or easily.
What we're now seeing is world military alliances and the economy rewiring themselves, not to be subservient vassals of a hostile U.S., as Trump hopes, but to bypass the U.S.. If trade barriers around the U.S. are going to come and go in an unpredictable manner, then business will respond by building outside of that uncertainty. Manufacture of some low-end products may be onshored to the U.S., but only to meet domestic U.S. demand if and where that is high enough. It doesn't make sense to move manufacturing inside a region with unpredictable trade barriers if it's going to serve a global market.
Take a look at the election results in Canada. What was expected to be an easy majority win for the Conservatives just a few months ago came out as near-majority for the Liberals. Both parties campaigned on anti-Trump measures that include increasing East-West trade/infrastructure within Canada, diversification of the economy to rely more on Asian and European markets, and reduced spending on defence products from the U.S.. This is long-term policy that will make Canada less vulnerable to future MAGA'ruptions, even long after Trump is gone. Trump could do a 180 tomorrow, but the impact of what he's already done will last for decades at the very least.