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Tariffs and deglobalization. Is globalization going backwards?

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  • Schilirò, Daniele

Abstract

This paper examines the current use of tariffs and the emerging trend of deglobalization, seeking to understand whether globalization is reversing. The contribution analyzes how rising protectionist policies—particularly the imposition of tariffs—have become significant catalysts in reversing global economic integration. The primary aim of this study is to examine the evolution of globalization and identify the key factors influencing it, drawing on a review of relevant literature and an analysis of a globalization index. Furthermore, the paper investigates the relationship between tariff implementation and the broader trend of deglobalization. The study employs an analytical-descriptive approach. Globalization is defined by extensive interconnectedness and integration, with cross-border exchanges facilitated by advances in technology, communication, and transportation. Since the 1980s, it has constituted a major driving force in the expansion of international trade and the restructuring of the global economy. This trajectory persisted until the onset of the COVID-19 pandemic in 2020, which precipitated a severe disruption to global economic activity. A subsequent recovery continued until April 2025, when the United States administration implemented tariffs on imports from a range of countries. These measures—subsequently modified on several occasions through bilateral negotiations or unilateral U.S. actions—impose varying rates according to the country of origin and the category of goods traded. The present study examines the potential implications of these policy interventions, with particular attention to their prospective long-term effects on global trade dynamics.

Suggested Citation

  • Schilirò, Daniele, 2025. "Tariffs and deglobalization. Is globalization going backwards?," MPRA Paper 126326, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:126326
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    References listed on IDEAS

    as
    1. Schilirò, Daniele, 2020. "Towards digital globalization and the covid-19 challenge," MPRA Paper 100504, University Library of Munich, Germany, revised May 2020.
    2. Dani Rodrik, 2018. "Populism and the economics of globalization," Journal of International Business Policy, Palgrave Macmillan, vol. 1(1), pages 12-33, June.
    3. Mary Amiti & Stephen J. Redding & David E. Weinstein, 2019. "The Impact of the 2018 Tariffs on Prices and Welfare," Journal of Economic Perspectives, American Economic Association, vol. 33(4), pages 187-210, Fall.
    4. Dani Rodrik, 1998. "Symposium on Globalization in Perspective: An Introduction," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 3-8, Fall.
    5. Schilirò, Daniele, 2016. "Innovazione ed economia basata sulla conoscenza [Innovation and knowledge-based economy]," MPRA Paper 111274, University Library of Munich, Germany.
    6. Naeimah Alkharafi & Mariam Alsabah, 2025. "Globalization: An Overview of Its Main Characteristics and Types, and an Exploration of Its Impacts on Individuals, Firms, and Nations," Economies, MDPI, vol. 13(4), pages 1-33, March.
    7. Fernando Broner & Jaume Ventura, 2016. "Rethinking the Effects of Financial Globalization," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 131(3), pages 1497-1542.
    8. Schilirò, Daniele, 2021. "Digital transformation, COVID-19, and the future of work," MPRA Paper 108817, University Library of Munich, Germany.
    9. Jagdish N. Bhagwati, 2004. "In Defense of Globalization: It Has a Human Face," Rivista di Politica Economica, SIPI Spa, vol. 94(6), pages 9-20, November-.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • F0 - International Economics - - General
    • F10 - International Economics - - Trade - - - General
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F6 - International Economics - - Economic Impacts of Globalization
    • G1 - Financial Economics - - General Financial Markets
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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