Global Trade Tensions and Protectionism Rise in 2026: How Tariffs and Geopolitical Shifts Are Reshaping the World Economy
By ZenX News Desk January 16, 2026
As 2026 unfolds, the global economy is facing a new era of trade tensions and protectionism, driven by rising tariffs, geopolitical rivalries, and efforts by major powers to secure critical supply chains. According to recent reports from the World Bank, IMF, and Atlantic Council, global growth is projected to slow to around 2.6-2.7% in 2026, with trade fragmentation emerging as a key risk. The United States' continued tariff hikes under the Trump administration, including new Section 232 measures on semiconductors and critical minerals, are prompting responses from the EU, China, and others, creating a ripple effect across global supply chains.
This shift marks a departure from decades of open trade, with countries prioritizing domestic industries a...