In an era when free trade is under threat, how can we uphold the principles of free trade and ensure economic security? Suzuki Kazuto unravels the dilemma between the two. The “weaponization” of the economy and the rise of economic security Free trade is in crisis. The Trump administration’s tariff policy aims to rebuild trade by placing “fairness and balance” above economic efficiency. For the United States, this means that a growing trade deficit through free trade is “unfair,” and rebalancing is important. Therefore, the US uses tariffs to reduce imports from other countries. If imports are required, the revenue generated from tariffs can be used to recover lost wealth. Whether this policy will produce the results President Trump claims and what impact it will have on the American economy is impossible to predict. Nevertheless, it is clear that this tariff policy is endangering ... ... [Read more]

Supply chain management to prepare for geopolitical incidents requires strategic thinking, where predicting the reaction of geopolitical competitors is essential to designing effective countermeasures. Deterrence is the key for promoting supply chain resilience Friend-shoring is a double-edged sword Risk can be alleviated by trust-building through inter-firm networks across national borders With looming uncertainty in the global business environment, the pursuit of economic efficiency is increasingly associated with supply chain vulnerabilities. “Resilience” became a keyword in supply chain management and now forms the core aspect of economic security. Supply chain vulnerabilities are attributed either to (1) physical risks, (2) cyber risks, or (3) geopolitical risks.[1] Physical risks include those of natural hazards, climate change, and pandemics. Cyber risks are represented by malicious attacks on critical infrastructure or theft/leakage of confidential data, while nowadays the disinformation maneuver using generative AI is gathering sharp attention. Geopolitical risks ... ... [Read more]