Trend Relative US decline and protectionism accelerate the retreat of globalization

Summary

Looking at the future world order, the report sees the largest current as the continuing relative decline of the United States, which has led the liberal economic order. As Trump's America First tariff policy shows, the United States is tilting toward protectionism in an attempt to fix its trade imbalances and manufacturing decline. It is also tightening controls to limit over-dependence on rival China for economic security reasons, and as a result the retreat of globalization is accelerating. The protectionist wave and spread of managed trade led by Trump 2.0 pose a huge challenge to Korea and Japan, whose outward-oriented economic models have operated within an open system. The report therefore argues that future Korea-Japan cooperation needs to be reconceived amid this sweeping transformation of the world economic order.