End of the American century?

New wave of tariffs is shaping and reshaping international trade relations and alignments

By Hassan Baig
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March 06, 2025
Capitol Hill building can be seen in this picture. — AFP/File

Everyone is feeling the turbulence in world affairs, with the change of guard at the White House making headlines. The United States Agency for International Development (USAID) has stopped funding crucial projects of utmost importance in developing countries. Aid through USAID is over, at least for the time being.

International diplomacy and politics are shifting as the new US administration takes the reins in the White House. Power politics is the order of the day. The recent Trump-Zelensky clash at the White House signals another shift in evolving international relations. The new wave of tariffs is shaping and reshaping international trade relations and alignments. The UN is in a state of quandary, searching for a direction to enforce peace in the world.

Human power has its own value system and charisma. The evolution of this value system is of great significance, as it has taken a long time to develop. However, the values in vogue today are under threat due to multiple factors. Democracy has been an evolving value system in which tolerance and patience to listen to opposing viewpoints hold prime importance. That, however, is eroding as the entire value system experiences turbulence. But the value chain is not limited to the democratisation of human values alone. It has been observed that the transactional approach, in fact, poses a great threat to the entire value system. At the top, democracy itself seems at risk of brinkmanship.

Western democracies have long led the developed world, with the US at the forefront. After World War II, America became one of the biggest beneficiaries of the global financial system, which evolved through international financial institutions like the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD), popularly known as the World Bank. The US rose to the status of an empire following the disintegration of the former Soviet Union (USSR) in 1990, earning the title of the world’s only ‘superpower’. The world became unipolar instead of bipolar. The American empire was built on a value system that extended from democracy and human rights to humanitarian aid. However, cracks are now beginning to appear in that system.

The new US administration has raised the slogan of ‘America First’ and initiated cost-cutting measures, including social security cuts in America and the suspension of USAID support abroad. Other initiatives include enforcing peace in the Middle East and Europe, withdrawing financial and other support from terrorist groups like ISIS and TTP, and encouraging American investors to bring back capital investment to the US.

Tariffs are being imposed on imports from various countries, including China and the EU, to tilt the balance of trade in favour of the US. Diplomacy is turning both sweet and sour in peace efforts, as seen in the White House meeting between Trump and Zelensky. However, the approach was quite different in the case of another war – being perpetuated by America’s ally.

It is believed that China, by default, may benefit from the trade and tariff war initiated by the new US administration under President Trump. Political and economic differences between the U. and its allies in the EU, Latin America, and the Middle East may ultimately work in favour of more friendly countries like China and Russia, allowing them to capitalise on trade opportunities. Trump's protectionist and "America First" approach may backfire in the case of trade wars with allies and other global economies.

While enforcing peace in Europe by pushing Zelensky to end the war with Russia is a significant move, the issue of humanitarian aid and supplies to another besieged area remains contentious. Peace in the Middle East is just as important as peace in Europe. However, America does not appear to be playing a significant role in restoring peace there, as a complete resolution and the full restoration of humanitarian aid and supplies remain a distant dream. The entire Arab world is feeling the pressure of American policies and struggling to adapt to the new situation.

Russia, China and the EU must play an important role in restoring global peace. The new American approach to world affairs appears broad and far-reaching, where peace and prosperity seem like a roller-coaster ride. However, the overall American stance and worldview lack universal democratic values, humanitarian aid and human rights considerations. A peaceful world that prioritises humanity, ensures smooth supplies and upholds humanitarian aid is essential. Democratic values cannot be ignored. Achieving peaceful coexistence must remain the ultimate goal. A transactional approach to global affairs would ultimately be detrimental to peace efforts in the long run.

There is no doubt that the world is moving towards multipolarity. The journey from a bipolar to a unipolar world has reached its pinnacle and will soon begin receding toward a multipolar structure. It is expected that Russia-and-China, the EU, and the US will form a new triangular power dynamic, with India and the African Union (AU) oscillating between them. The dream of a vast American empire, encompassing Canada, Greenland and parts of the Middle East as its territories along with the Panama Canal, is a transactional ambition that is unlikely to materialise. The world is rapidly shifting in favour of multipolarity. But what about developing countries like Pakistan?

Technological advancements and ensuing trade wars between technologically elite nations are positioning developing countries as subservient states, compelled to comply with the directives of new colonial masters. These modern colonies will not be physically occupied but will instead be economically exploited through new instruments of power -- large multinational corporations. The strategic approaches of the US/EU and their allied developed nations, as well as China and Russia, resemble the colonial tactics of the past. The only difference is that the tools of war have evolved in this new world order. The exploiters are now tech giants and multinational corporations owned by the US/EU and China/Russia.

A new class of technological elites is emerging to monopolise global trade and business. Chips and semiconductors are the linchpin of these cutting-edge technologies. Batteries have gained pivotal importance in powering the machines transforming the world. AI-powered applications, driven by advanced chips, have assumed a dominant role in the technological landscape. Wealthy, advanced nations -- especially the US, Russia, China and the EU -- are engaged in a fierce race to outpace their competitors by monopolising chip and semiconductor technologies. There is no doubt that technological elites will dominate the future.

The world is in a state of fierce competition, with no country willing to let others gain an edge. Humanity has suffered greatly at the hands of its own kind, with a long and complex history of conflicts, struggles and wars. The ideals of chivalry and conquest have never truly disappeared. The two World Wars of the twentieth century serve as stark reminders of human ingenuity in warfare. Despite efforts to establish lasting peace, such as the creation of the UN, the ultimate goal remains unfulfilled. Now is the time for those in power to rethink their priorities, unite, and give peace a genuine chance -- saving humanity from poverty, hunger and suffering. A purely transactional approach will not bring lasting peace and prosperity to the world.

The emerging multipolar world has the potential to adequately address the needs of humanity, helping to protect people from hunger, starvation and extreme poverty. It is necessary to use the UN General Assembly -- backed by the P-5 members of the Security Council -- to resolve the major challenges facing humankind.

The war economy must be redirected towards a welfare economy to eradicate poverty globally. Resources, from AI to digital economies, must be channeled towards ensuring access to quality healthcare, better education, food security and protection from the devastating effects of climate change. Instead of engaging in wars, the world must unite to fight against poverty and address these urgent humanitarian issues.


The writer is a former additional secretary. He can be reached at: hassanbaig2009gmail.com