Trade protection isn't globalization

Trade is, and always was, political, it’s just becoming more so.

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Globalization: turning back time
Welcome to the Know the Difference Minute for Tuesday, September 12th.
There’s been a lot of talk about de-globalization. Deglobalization is the idea that countries are turning more inward, trying to not rely on trade with other countries.
What’s actually happening is that trade is shifting towards military allies and with countries with aligned political ideals. That’s different from deglobalization. It’s more like a reorientation of trade.
It’s nothing new. It’s a trend that started more than 15 years ago, though it accelerated starting in 2016.
Trade protection and restrictions have always been used as political and diplomatic tools. From 2001 through 2007, these restrictions were greatly reduced, but even then, trade was never unfettered. Trade is, and always was, political, it’s just becoming more so.
Consumers ultimately foot the bill, but it’s a gradual process and one that tends to benefit large and politically well-connected firms the most.
I’m Brian Jacobsen, Chief Economist at Annex Wealth Management. That is your Know the Difference Minute.