Global Trade War 2.0: How Carbon Taxes and Subsidies Are Redrawing the Economic Map
🌍 Global Trade War 2.0 — The New Order Shaped by Carbon and Subsidies From the U.S. IRA and CHIPS Act to the EU’s CBAM, and the responses of China and Korea. Carbon taxes and subsidies have emerged as the new weapons of trade, reshaping the global economic order. This article offers an in-depth analysis of what strategies businesses and investors must prepare for. --- Introduction — Why Carbon and Subsidies Became the New Weapons of Trade Until the late 20th century, the central issue in international trade disputes was primarily “tariff rates—lowering or raising them.” Countries negotiated through the WTO to reduce trade barriers, or, when necessary, raised tariffs to protect domestic industries. But entering the 2020s, the rules of the game have completely changed. Today, the decisive factors in trade are carbon regulation and government subsidies. The United States is pulling global companies onto its soil through subsidies, the European Union (EU) has made carbon taxes...