Editor's note: Yasir Masood (PhD) is a Pakistani political and security analyst, academic, and broadcast journalist specializing in strategic communication. The article reflects the author's opinions and not necessarily the views of CGTN.
As 2025 draws to a close, analysts are grappling with a pivotal question: Has this year marked a decisive turn toward protectionism in global economics? The U.S. implementation of tariffs up to 145% on select imports has triggered what experts describe as the most significant realignment of trade relationships since the Nixon era.
American economist Jeffrey Sachs warned in an interview that these measures echo the disastrous Smoot-Hawley tariffs of 1931, stating: "This represents a dangerous escalation of economic nationalism that could unravel decades of international cooperation." Current data shows the policies have added approximately $1,200 to average U.S. household expenses this year alone.
While the U.S.-China trade deficit shrank to $160 billion through September 2025 – down 57% from 2018 levels – the broader consequences are becoming clear. British professor Michael Dunford drew parallels to the 1971 collapse of the Bretton Woods system, noting: "We're witnessing a fundamental challenge to the post-WWII economic order, driven by America's $8.66 trillion short-term debt burden."
The developing world faces particular strain, with supply chain disruptions forcing rapid industrialization efforts in Southeast Asia and Africa. Meanwhile, the Western financial system's $2 quadrillion derivatives exposure – described by geopolitical analyst Mike Billington as "a sword of Damocles" – adds urgency to debates about currency realignments and manufacturing relocation.
