Trump's tariffs, initially feared to destabilize the global economy, instead prompted businesses to prioritize political risk and strategic resilience over efficiency, altering globalization's landscape without causing a collapse. However, ongoing geopolitical tensions, like the war in Iran, could further strain the already fragile global economic order.
The key insight for you is that tariffs have shifted global business priorities from efficiency to strategic resilience, making political risk a permanent factor in economic decision-making. This shift necessitates a focus on supply chain redundancy and political safety, indicating that businesses must prepare for increased geopolitical risks, such as the ongoing situation in Iran, which could disrupt the global economy further.