Protectionism

Diversify by routes/partners: obtain goods from a wider range of countries, suppliers, or shipping lanes to reduce reliance on any single source or long-distance route (e.g., add regional suppliers instead of only one overseas supplier).

More fragmentation:

• Reduced integration: Less cross-border trade, investment, and supply-chain interdependence.
• Trade blocs & decoupling: Countries form regional blocs or deliberately decouple from rivals (tariffs, sanctions, local sourcing).
• Diverging standards: Different regulations, tech standards, and data rules across regions.
• Supply-chain shifts: Firms diversify or “near‑shore” suppliers, creating parallel networks instead of one global chain.
• Economic and political causes: Geopolitical tensions, protectionism, national security concerns, and pandemic disruptions.
• Consequences: Higher costs, more redundancy and resilience, slower global growth, increased regional self-reliance, and possible opportunities for local industries.
  

U.S. trade policy’s bipartisan shift:

• More emphasis on protecting domestic industry and jobs (tariffs, trade remedies).
• Greater focus on national security and supply‑chain resilience (export controls, investment screening).
• Use of industrial policy and targeted subsidies to bolster strategic sectors.
• More selective trade engagement—prefer regional or allied partners and conditional agreements.

Implication: trade decisions are less driven by pure market liberalization and more by economic security, competitiveness, and domestic political concerns, with support from both parties.