In addition, the pandemic-induced collapse of world trade also meant that there was less trade to restrict as governments focused on containing the outbreak and not on their trade policies. Global trade will face more headwinds in coming yearsThe forces driving this protectionist bent in trade policies are quite powerful and will probably dominate any more benign forces. This shift in economic philosophy is evident in the Biden administration. The Biden administration has also indicated that it will step up on environmental rules to reduce its carbon footprint. In the 1970s and 1980s, Germany and Japan deflected American trade pressure on them by investing heavily in manufacturing production in the US.

Source: The Edge Markets April 06, 2021 04:07 UTC