President Trump is weaponizing trade.  After decades of globalization and expanding trade, recent shocks have exposed the fragility of global value chains (GVCs).   As rising geopolitical tensions fuel protectionist sentiments and trade wars, the urgent need for sustainable and environmentally friendly supply chains for economies is becoming abundantly clear.  President Trump is pushing firms and governments to reassess their exposure to GVC risks.  To reduce dependence and increase resilience, companies are exploring backshoring (bringing production back within national borders), nearshoring (relocating to nearby countries), and friendshoring (shifting to allied nations).   These shifts could profoundly reshape GVCs while supporting the global transition to a low-carbon circular economy.

Cadarso, María Ángeles, Ángela García-Alaminos, Louise Curran, and Thibaut Joltreau. "Global Trade is Fracturing: Here’s Why the EU Needs the Green Deal More Than Ever". The Conversation. February 06, 2025. https://theconversation.com/... (Contributed by Gregory Autin).

Posted on 21/02/25

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