Global markets are bracing for turbulence as former U.S. President Donald Trump's 2025 tariff plan—145% duties on Chinese imports and a 10% flat rate for other nations—threatens to fracture international trade systems. Experts warn the policy could accelerate a seismic shift in economic alliances, echoing Richard Nixon's 1971 currency moves that reshaped global finance.
Professor Michael Dunford of the University of Sussex told CGTN the measures expose America's attempts to manage "unmanageably large" deficits rooted in declining domestic competitiveness and debt topping 8.66 trillion USD. "The U.S. is dismantling the existing international economic order," said Dunford, comparing current actions to Nixon's pressure on European allies decades ago.
Key regional blocs like ASEAN and RCEP, alongside BRICS initiatives for alternative settlement systems, may gain momentum as nations diversify partnerships. South Korea and Japan are already deepening trade with China, while emerging payment networks challenge dollar dominance. For the Global South, this realignment could reduce historical imbalances—though near-term disruptions remain inevitable.
As financial strain divides traditional alliances, analysts see opportunity in Asia's rising integration. The question now isn't whether global trade will adapt, but how rapidly new frameworks can offset Washington's protectionist pivot.
