From China's perspective, producing more than it needs and exporting at cutthroat prices is a strategic tool, not an economic problem. This form of industrial warfare is designed to weaken other nations' manufacturing bases, prioritizing geopolitical goals over profit.

Contrary to its goals, the U.S. trade war has resulted in self-isolation. Data shows the U.S. is the only country buying less from China, while U.S. allies and developing nations have increased their trade, leading to a record $1 trillion surplus for China. This highlights a strategic miscalculation in U.S. foreign trade policy.

While the US exports less to Canada by volume, its exports (electronics, pharma) have far higher margins and shareholder value multiples than Canadian exports (lumber, oil). Therefore, for every dollar of trade disrupted by tariffs, the US loses significantly more economic value, making the policy self-defeating.

A law requiring the US military to source its clothing domestically provides a crucial, stable revenue stream for American factories. This allows them to stay afloat and produce consumer goods, especially in the technical outdoor gear sector, that would otherwise likely move overseas.

An emerging geopolitical threat is China weaponizing AI by flooding the market with cheap, efficient large language models (LLMs). This strategy, mirroring their historical dumping of steel, could collapse the pricing power of Western AI giants, disrupting the US economy's primary growth engine.

When trade policies force allies like Canada to find new partners, it's not a temporary shift. They build new infrastructure and relationships that won't be abandoned even if the political climate changes. The trust is broken, making the economic damage long-lasting and difficult to repair.

After WWII, the U.S. used its naval dominance to guarantee global trade. In exchange for writing its allies' security policies, it allowed open access to its market. This economic "unfairness" was the strategic cost of building a global coalition against the Soviet Union, effectively bribing nations into an alliance.

China deliberately maintains an undervalued renminbi to make its exports cheaper globally. This strategy props up its manufacturing-led growth model, even though it hinders economic rebalancing and reduces the purchasing power of its own citizens.

Geopolitical shifts mean a company's country of origin heavily influences its market access and tariff burdens. This "corporate nationality" creates an uneven playing field, where a business's location can instantly become a massive advantage or liability compared to competitors.