"This renewed focus has brought economic statecraft to the forefront, as governments increasingly deploy trade restrictions, foreign investment scrutiny, and sanctions as foreign policy tools to advance their agendas and exert influence. After decades of near-unwavering commitment to free trade and the rapid globalization of markets across the Western world, we are witnessing a protectionist turn, with U.S. tariff levels reaching heights not seen in nearly a century."
"At the same time, governments are increasingly relying on industrial policy to promote domestic production and strategic sectors, triggering a global subsidy race that is reshaping competitive dynamics. This shift is unfolding in an increasingly polarized world, marked by the rise of regional power centers such as the BRICS and growing fragmentation within the transatlantic alliance."
Geopolitical forces have surged, with national interests and strategic rivalries reshaping global business strategies through trade restrictions, investment scrutiny, and sanctions. A protectionist turn has emerged after decades of liberalized trade, with U.S. tariffs rising to near-century highs and growing barriers across sectors. Governments are using industrial policy and subsidies to promote domestic production, altering competitive dynamics. Rising regional power centers and fragmentation within traditional alliances compound risks. Armed conflicts and state-backed cyber operations are disrupting supply chains and targeting critical infrastructure. Declining long-term predictability makes capital-intensive investments more risky and exposes boardrooms to strategic blind spots.
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