There are visible signs of global disorder. Has the social contract crumbled? The US declared a global trade war. Not even the penguins were out of sight. Not everyone perceives the world as it is. Retaliate or negotiate.
The United States government is essentially asking for a political loyalty pledge. If you try to negotiate, there will be give-and-take. If retaliation occurs, it equates to hostility towards any negotiation prospects. It resembles a high-stakes game where the consequences of each move can significantly influence future relations.
Economic issues have traditionally dominated political debate, with international commerce being one of the most significant elements throughout history. It has broad political, financial, and social implications.
President Donald Trump has announced sweeping reciprocal tariffs against US trading partners. He is imposing a 10 per cent baseline tax on all imports and far higher tariff rates on dozens of countries with trade surpluses with the United States. Whether he eventually backs down on his decision is another matter.
Did Donald Trump accelerate the search for a new world order with his Liberation Day tariff? According to literature reviews, the interests of the United States are not necessarily those of the rest of the globe. However, global players remain interested in US leadership.
Several countries have sought American military protection. In the Middle East and Arabian Gulf, for example, the US has military bases and thousands of soldiers deployed to keep a watch on potential enemies.
We often view conflict and cooperation in world affairs through theories, presuppositions, and assumptions. While the world is stunned by the declaration of tariff madness, Israel is seizing portions of land in Gaza; people are dying in Ukraine and elsewhere while lucrative deals are being fixed behind closed doors or on golf courses.
We must admit that the United States holds together various leadership characteristics, ranging from technology, finance, and military to scientific and cultural. No other world player can combine all of these traits simultaneously.
A key understanding of international politics is the concept of interest defined in terms of power. Interest is consistent; what can vary is time, place, and context. An essential point in international relations is how policies influence the power of a nation. It is all about national interest.
Economic coercion, in the form of trade and investment policies, as well as the weaponisation of interdependence, has recently gained attention. Literature suggests that over the last 20 years, US politicians have exploited the leverage generated by America’s central position in global financial networks to advance their foreign policy objectives.
Globalisation had a big impact on changes in the international order, with one tactic being deindustrialisation, which involved shifting a significant portion of production, economy, and technology from industrialised to developing countries, allowing emerging economies to thrive.
Transnational businesses, large firms with subsidiaries in multiple countries, increasingly influenced the United States' rise to global economic dominance. By the end of the century, the United States headquartered nearly half of the world's top 500 firms.
Thanks to globalisation, countries such as Brazil, Russia, India, China, Indonesia, Mexico, and numerous others have become big players in global trade, consequently reshaping political and economic relationships between advanced and developing nations.
A system of cross-border understanding and behaviour frequently guides international relations and commerce transactions. The interactions are based on psychological and socio-psychological principles. It is a highly interactive concept that requires high levels of communication and often involves dialogue, negotiation, and representation.
The complex interdependence of trade and economic relations highlights the impact of international developments on both citizens and governments. With the US changing its ambitions as a global player, other nations are examining how to adapt to a fractured world. Besides posing a challenge to the international community, this could redefine global economic leadership.
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