Global Trade Rewires as Tariff Tensions Rise

In this week’s commentary, Northern Trust’s global economics team reflects on recent insights gathered across Asia, analyzing the shifting dynamics of global trade under evolving U.S. tariff policy.

• Asian sentiment signals adjustment, not retreat — while concerned by U.S. unpredictability, many countries are actively diversifying trade partnerships beyond the U.S.

• Legal limits on U.S. tariffs emerge, with a recent court ruling striking down reciprocal tariffs; however, multiple legal pathways still allow for future escalation.

• U.S. trade dominance wanes, with China now the top trading partner for more than 120 countries and global supply chains adapting accordingly.

Explore the full report to examine the legal, economic, and geopolitical undercurrents reshaping the global trade map.