Imbalances-fueled protectionist backlash

Updated: 2025.08.09 7M ago 3 sources
Persistent surplus-country reliance on external demand and multilateral failure to induce domestic rebalancing drive a shift toward unilateral protectionism. — Explains the erosion of rules-based trade, rising tariffs, and pressure to reform WTO/IMF; informs policy on industrial strategy and U.S.–Europe/China economic relations.

Sources

Why Won’t the Economy Listen to the Models?
Oren Cass 2025.08.09 100% relevant
Wong cites two decades of unsuccessful IMF/Treasury efforts to boost domestic demand in China and Europe and Bergsten’s forecast of a protectionist backlash that has now materialized.
Overcoming Tariff Derangement Syndrome
Oren Cass 2025.08.04 85% relevant
The article argues that high, uniform tariffs can reduce trade deficits and improve welfare without sparking retaliation, explicitly reframing concern with the balance of trade and rejecting laissez-faire assumptions—core to the backlash against rules-based free trade amid persistent global imbalances.
Industrial Maximalism: Lu Feng on Manufacturing, AI and US-China Rivalry
Thomas des Garets Geddes 2025.06.19 75% relevant
The article’s defense of more Chinese manufacturing despite surplus accusations invites escalating US/EU countermeasures, fitting the pattern where persistent external-demand reliance triggers unilateral protectionist responses.
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