According to Nigel Green, CEO of deVere Group, Donald Trump’s new tariffs are accelerating a significant shift in the global economy. This isn’t just a simple trade dispute; it’s an active and permanent move toward a multipolar economic system, where power is no longer centered solely on the United States.
Tariffs Reshaping Global Trade
Effective August 7, the U.S. imposed tariffs on many of its major trading partners, with rates varying widely:
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Canada: 35%
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Brazil: 50%
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India: 25% (in addition to a financial penalty for its ties to Russia)
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Switzerland: 39%
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Taiwan: 15-20%
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Israel, Pakistan, and Norway: 15-20%
Green notes that even close partners like India are being pressured, leading them to seek deeper cooperation with rivals like China.
Global Responses and Economic Realignments
The international response to these tariffs is already underway. Countries like China, Russia, and India are increasing their coordination on trade and infrastructure. Long-standing allies are also reassessing their risks and exploring ways to reduce their reliance on the U.S. economic system altogether. Green explains that countries are now “building systems that can operate without U.S. permission.”
Implications for the Global Economy
This shift has several long-term consequences:
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Trade and Supply Chains: New trade networks are forming based on regional strength rather than global scale, leading to a realignment of supply chains.
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Currencies: While the U.S. dollar remains dominant, its influence is being challenged. Central banks are diversifying their reserves, and new regional payment systems are being developed to bypass U.S. control.
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Investment: For investors, this new multipolar environment means weakening correlations, higher policy risks, and increased exposure to geopolitical shifts.14 Green warns that anyone expecting a return to the old economic order is “behind the curve,” as this fragmentation is the “new baseline.”
