TRADE IS WAR BY OTHER MEANS

Trade wars have usually been contests for markets. Today’s is a contest for more than that. It is a battle to determine which nation, and which ideology will dominate the world order in the coming decades.

On one side we have the present champion, by any meaningful measure the dominant economic and military power. America’s wealth, its productive capacity, the might of its military are clearly superior to those of any other nation. It plans to retain that world-leading position by subsidising key industries, and including buy-American restrictions in government contracts. American firms such as Intel (Ohio) and Taiwan Semiconductor (Arizona) are investing billions in fabricating facilities (“fabs”) in America. Subsidies work.