Editorial: Trade Wars

Dear reader,

The Trump administration has rolled out a drastic response to the U.S.–China trade war by levying a comprehensive 100% tariff on all Chinese goods after China imposed tight export controls on rare earth minerals. These minerals are the absolute necessities for a varied and futuristic technology spread like semiconductors, electric vehicles, LEDs, etc.

U.S. states that the move is “economic coercion,” and Trump said if China does not stop, the next moves from the U.S. will be more tariffs and export restrictions on software used by China. The flick of economic policy as a weapon used in the global power struggle is becoming more visible by the day.

At the same time, the Indian-Pacific region is a site of changing trade patterns. Costa Rica decided to put joining the Indo-Pacific trade agreement, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), ahead of other regional deals like the EU-Mercosur. That shift itself speaks of how the Indian-Pacific has become the new global trade and how the world is geopolitically aligning due to the economic pressures.

These events are not the isolated ones but the pieces of the big picture where economic policies get more and more entangled with national security issues. The tariffs that have an impact on the global supply chain and the strategic trade agreements that change the shape of regional alliances depict the rapid facelift of the international economic relations landscape.

In the first issue of our International Economic Relations Report, we get to the bottom of the knotty matters here. Our members dissect the origin of sanctions and trade wars, the effect of tariffs on manufacturing and security sectors, the evolution of trade agreements and do it all through a lens of robust analysis. We intend to uncover the problems and prospects that arise when economics meets global security.

This report came to be through the collaboration of students and young professionals from Europe and beyond, brought together by the EPIS Thinktank. The variety of their views and skillsets is the fuel of the debates you will find in the pages of this report.

As we confront such difficult issues, it remains vital to seek a middle ground between national interests and global cooperation. If used properly, economic measures may be a source of stability and prosperity; conversely, mistakes might result in unforeseen repercussions. We would be glad if this report became a part of informed debates and helped policymakers to take prudent decisions in international economic relations.

Valentin Grangier

EPIS Report Groups, Resort Leader & Editor of the EPIS International Economic Relations Report