"Everything is about national security. It is about mercantilism. It is about friend‑shoring. We went from just-in-time to just-in-case, getting resources from where we think is most secure. The efficiency of trade and globalization, low tariffs and efficiency, is not part of the equation."
"Only 7% of U.S. crude imports travel through the Strait of Hormuz. Europe, which shifted its energy supply after Russia invaded Ukraine, gets a little less than 10% of its gas through the passage. Almost half of China's imports come through there, which explains why Beijing is worried though unlikely to get involved."
Trump's proposal for insurance backstops and naval escorts in the Strait of Hormuz reflects growing concerns about maritime security and energy supply disruptions. While only 7% of U.S. crude imports transit this passage, nearly half of China's imports do, explaining Beijing's concern. Rising oil prices indicate traders worry such measures may not adequately reduce attack risks. The broader context reveals a fundamental shift in global trade dynamics away from the efficiency-focused globalization model. Leaders are increasingly adopting mercantilist policies emphasizing national security, protectionism, and friend-shoring. This transition from just-in-time to just-in-case supply chains prioritizes resource security over economic efficiency, representing a return to 19th-century economic principles.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]