Revisiting Protectionism in the Global Economy: Economic, Supply Chain, and Technological Implications of the 2025 U.S. Tariff Policies

Abstract

The rise of protectionist policies, such as the 2025 U.S. tariff increases, marks a clear shift from globalization and creates complex challenges for global trade. This study evaluates the impacts of these policies on economic stability, supply chains, geopolitical tensions, and technological advancements. Using a multidisciplinary approach- political economy analysis, scenario modeling, and actor-network mapping- it explores both macro and micro effects. Findings reveal significant economic disruptions, including decreased trade in sectors like automotive and electronics, and inflation affecting U.S. households. Supply chains are restructuring as businesses relocate manufacturing to Southeast Asia and implement AI-driven logistics for resilience. Tensions have risen from retaliatory actions by partners like China and Canada, heightening market instability. Innovations like blockchain and AI logistics are key to mitigating these challenges. The study offers insights for policymakers and businesses on balancing protectionism with global collaboration while addressing issues like inflation and job losses. It guides diversification of supply chains and the use of emerging technologies for effective risk management. By presenting a framework for understanding modern protectionism, this research calls for more investigation into sustainable economic strategies in a fragmented world.