Modern Mercantilism: Trade, Technology, and Strategic Power in the 21st Century

June 2025

Over the past half-century, free trade policies have been the cornerstone of global economic integration, driven by neo-liberal ideals that championed open markets, low or no tariffs, and the free flow of goods and services across borders.

These principles, endorsed by institutions like the World Trade Organization (WTO) and ostensibly embraced by many western economies, paved the way for unprecedented levels of globalization, fostering interdependence among nations and fueling economic growth. However, in a shift reminiscent of mercantilist doctrines of the past, many nations, including the United States, are increasingly adopting policies that prioritize self-sufficiency, safeguard strategic industries, and build resilient supply chains. This evolving approach reflects a nuanced blend of free trade with targeted protectionism, signaling a departure from unfettered globalism toward a more calculated and strategic economic framework.

View macroeconomic newsletter