The global trade realignment is advancing forcefully following Brexit and the return of U.S. protectionism. The economic landscape is changing.
Post-Brexit UK: Autonomy over integration
One of the sparks behind the global trade realignment was the 2016 British referendum. With 51.9% of the vote, the UK decided to leave the European Union—a decision formally completed in January 2020.
This departure wasn’t abrupt. Since the late 20th century, the UK resisted surrendering monetary sovereignty (rejecting the euro) and political integration (opposing the European Constitution). It also disagreed with the EU’s immigration policies, particularly regarding Eastern Europe and Africa.
Post-Brexit, the UK turned to bilateral agreements. It signed a continuity agreement with Mexico, aiming to conclude a free trade agreement by 2023. However, the treaty remains unfinalized and unsent to the Mexican Senate. Meanwhile, the UK applied to join the CPTPP and officially became its 12th member in 2024.
The U.S. tariff strategy: Protectionism reloaded
Since March 2025, Donald Trump has revived his signature strategy: imposing massive tariffs to “protect” domestic industry. This move is part of the broader global trade realignment, marked by bilateral deals and unilateral measures.
Key products such as Brazilian coffee now face tariffs of up to 50%. Electronics, pharmaceuticals, and vehicles have also seen increases ranging from 26% to 34%. These hikes drive up everyday costs for U.S. consumers.
Trump aims to revive industrial jobs, bring factories back home, and reduce the trade deficit. However, many companies rely on imported inputs. Rising costs reduce competitiveness and profit margins.
The domino effect is spreading: countries like Colombia, India, and Vietnam have emerged as alternative suppliers, as global supply chains undergo a major reconfiguration.
WTO in paralysis: A multilateral crisis
The U.S. blockade of the World Trade Organization appellate body since 2020 has left 31 unresolved cases, weakening the core of the global trade system. This has deepened legal uncertainty and eroded trust in trade rules.
Though countries like Mexico have promoted alternative solutions like the MPIA, the absence of judges in the main system reflects a deeper institutional erosion. The rules exist but not all are willing to follow them.
China under scrutiny: Subsidies, deficits, and rising tensions
China also plays a leading role in the current global trade realignment. Its development model, based on opaque subsidies to industries like steel, glass, and semiconductors, has drawn criticism. The U.S., EU, and others accuse China of unfair practices.
The U.S. trade deficit with China surpassed $200 billion in 2024. It has remained negative every year since 1985. Yet, many American companies continue producing in China due to its cost advantages.
The tariff war launched in 2018 still lingers, although President Joe Biden eased some duties to curb inflation and secure supply chains in key sectors like tech and energy.
The global trade realignment shows no signs of slowing. With moves like Brexit, tariff conflicts, and rising geopolitical tensions, the international trade framework is being reshaped. Businesses must now adapt with speed, strategy, and reliable logistics protection.
In this volatile landscape, having specialized insurance for cargo shipments is no longer optional, it’s essential. At ONUS Insurance, we understand that every shipment is both an investment and a promise. That’s why we offer transportation insurance designed to cover international risks, safeguard your assets, and ensure your operations run smoothly, even during unexpected disruptions.
Secure today what you’ve built with effort. At ONUS Insurance, we protect your cargo and your business.
You might also be interested in: Geopolitical tensions project uncertain future for 2025, according to WTO
Sources
López, H. Á., & López, H. Á. (2025, 31 julio). Aranceles de Trump: ¿protección económica o bomba de tiempo global? Periódico elDinero. https://eldinero.com.do/331937/aranceles-de-trump-proteccion-economica-o-bomba-de-tiempo-global/
Nuevo desorden económico internacional parte I. (2025, 19 junio). @TLCMagazineMx. https://tlcmagazinemexico.com.mx/index.php/2025/06/19/nuevo-desorden-economico-internacional-parte-i/
