Paradoxically, tariffs intended to punish China could result in it facing lower duty rates than US allies like Japan or South Korea. This is because China possesses unique retaliatory leverage (e.g., rare earths) to force targeted tariff reductions from the U.S., an option unavailable to other nations.

The current era of exploitative digital platforms was made possible by a multi-decade failure to enforce antitrust laws. This policy shift allowed companies to buy rivals (e.g., Facebook buying Instagram) and engage in predatory pricing (e.g., Uber), creating the monopolies that can now extract value without competitive consequence.

The tariff war was not primarily about revenue but a strategic move to create an "artificial negotiating point." By imposing tariffs, the U.S. could then offer reductions in exchange for European countries committing to American technology and supply chains over China's growing, low-cost alternatives.

The US President's move to centralize AI regulation over individual states is likely a response to lobbying from major tech companies. They need a stable, nationwide framework to protect their massive capital expenditures on data centers. A patchwork of state laws creates uncertainty and the risk of being forced into costly relocations.

US Undersecretary Rogers uses the metaphor of "regulatory gravity" to describe how EU rules, like the Digital Services Act, compel global compliance. Companies conform to EU standards even in markets like the UK, demonstrating a de facto extraterritorial reach that impacts global commerce and policy.

The US assumes its democratic values create a trust advantage. However, unpredictable actions, like threatening to cut off tech access to partners, undermine this trust and create an opening for China. China is exploiting this by positioning itself as a more reliable, if not more ideologically aligned, long-term supplier, especially in the Global South.

Beyond the US-China rivalry, a new front is opening between Brussels and Beijing. Incidents like the French suspension of fashion retailer Shein are not isolated but symptomatic of growing European mistrust and a willingness to take action. This signals a potential fracturing of global trade blocs and increased regulatory risk for Chinese firms in the EU.

By treating allies as rivals and weaponizing tech access, the Trump administration broke the old dynamic of US trade protection. This spurred Europe to pursue its own sovereign tech stack ('Eurostack') to reduce dependency.

Unlike previous administrations that used trade policy for domestic economic goals, Trump's approach is distinguished by his willingness to wield tariffs as a broad geopolitical weapon against allies and adversaries alike, from Canada to India.