Deglobalization in the Modern World
- Sylvia Rose
- Apr 3
- 6 min read
Deglobalization is the diminishing of interdependence and integration of nations and the rise of national self-sufficiency. Globalization, once a driving force, erodes. The cycle happens since the birth of civilization.
Deglobalization refers to the gradual decline in economic, social, and political interdependence among nations. This trend contrasts with globalization, which emphasizes global connectivity.
Instances of deglobalization are linked to economic recession, conflicts or shifts in national policies. In 2025 economic trade, investment, and cultural exchanges among countries continue to decline.
Recent movements toward national sovereignty and protectionist policies show this shift. Geopolitical tensions, the rise of populism, environmental concerns and deteriorating trust in global institutions are major factors.
In 2020 the global trade volume falls by 6.5%, and years later has not fully recovered. Nations increasingly prioritize local rather than international interests.
The shift in economic strategies shows how nations adjust priorities in response to changing dynamics.
Economic Fragmentation & Geopolitical Tension
Seeds of deglobalization are sown long ago, but recent geopolitical events accelerate the process. These include lasting repercussions of the 2022 energy crisis and the ongoing conflict in Eastern Europe.
Rising tensions in the South China Sea also expose vulnerabilities in relying on globally interconnected supply chains. Nations prioritize domestic production, secure access to critical resources and reduced dependence on potentially hostile nations.
Reshoring & Friend-shoring
Western nations like the US and EU member states actively incentivize companies to "reshore" production, bringing manufacturing back home. Simultaneously, "friend-shoring" is gaining traction.
This prioritizes trade and investment with allies and nations sharing similar values, creating distinct economic blocs with limited interaction.
Trade Wars & Protectionism
The trade war initiated in the previous decade becomes a web of tariffs, sanctions and export controls. Nations increasingly use these to protect domestic industry, limit access to technologies and exert political pressure.
Ongoing disputes over advanced semiconductor technology are a prime example, with nations investing heavily in domestic chip production and restricting exports to potential rivals.
In 2025, threatened with high tariffs by the US, a semiconductor company in Taiwan hands over $100 billion. Part of this is for protection from the Chinese, who practice ever bolder war exercises around Taiwan. The US thanks Taiwan by smacking the country with 34% import tariffs anyway.
As deglobalization takes hold, its economic ramifications are evident worldwide. The ongoing trade war between the US and China exemplifies the negative outcomes of diminished interdependence.
Increased tariffs by US already cost an extra $831 per American family a year. 2025 tariff wars incited by the US further degrade its economy as nations like Canada, China and EU grow in autonomous strength.
US threats of making Canada the 51st state, taking over Greenland and bombing Iran alienate allies and anger other world powers. Greenland comes together as a people with support of Denmark to fight back.
Canada hits the US with auto tariffs which fracture the US automotive economy. Canadian "snowbirds", people who winter in southern states like Florida, sell their US homes and take their money elsewhere.
In the global economy, shifts in strategies are particularly prominent in sectors like agriculture, technology, and manufacturing. Countries reduce reliance on foreign supply chains.
Nations push for local production. The level of self-sufficiency today has not been seen in decades.
The ongoing trade war between the US and China sees tariffs rise up to 25% on imports. disrupting trade and provoking international tensions. Recently the US, with skillful lack of diplomacy, adds another 34%.
Several countries including Afghanistan, Algeria, Angola and Bangladesh already tariff US imports in a bid to keep business at home. When the US hits them with "reciprocal tariffs" in 2025 it solidifies nationalist agendas.
Rise of Nationalism & Populism
Undercurrents of nationalism and populism, with economic anxieties and cultural grievances, reinforce protectionist policies. Governments under domestic stress tend to prioritize national interests over global cooperation.
Nations implement policies hindering trade and cross-border investment. Re-emergence of strong national identities and questioning of international institutions further contribute to the fraying of global ties.
Leaders in nations such Brazil and Hungary also embrace policies favoring national interests over collaboration. They rally public sentiment against globalization, viewing it as a threat to domestic jobs and local industries.
Hungary notably removes itself from the ICC (International Criminal Court) to welcome the Israeli leader, who is facing arrest for war crimes. In Gaza, Israel launches fatal attacks on civilians, hospitals, schools and aid workers.
In the US, Zionist informers point out people who denounce Israel for its blatant genocide, calling them anti-Semitic and pro-Palestine. In other news, massive US deportations target legal immigrants and students.
The surge of nationalism complicates international alliances and undermines multilateral organizations. Countries focus on bilateral relations or regional partnerships instead of broader global cooperation.
Technological Decoupling & Data Sovereignty
The digital realm experiences its own form of deglobalization. Concerns over data security, privacy, and national security fragment the internet and invoke the rise of data sovereignty.
The Splinternet: The concept of a unified, global internet decays. Governments enact stricter regulations on data flows, requiring data localization and censorship, creating distinct digital ecosystems.
Ongoing debate over the regulation of artificial intelligence and stringent data privacy laws in different countries further contribute to fragmentation. For example, the US puts tariffs on China for "intellectual property theft."
Meanwhile, China's nationalism extends to domestic censorship including blockage of various websites, apps, and video games. This inspires the policy's nickname, the Great Firewall of China.
Technological Nationalism: Nations invest heavily in their own tech capabilities. This aims to reduce dependence on foreign technologies and maintain control over critical infrastructure.
Technological nationalism is particularly evident in areas like 5G, artificial intelligence and quantum computing. Several nations strive for global dominance.
As of 2025 there is a significant digital divide. While some countries rapidly innovate, others lag behind. Deglobalization alters social and cultural dynamics. Decrease in global exchanges imparts cultural isolationism.
As people function within national boundaries, global connections and worldly wisdom decline. Education programs, research collaborations, and cultural exchanges also drop. Nations tighten immigration policies.
Problems of Deglobalization
Proponents of deglobalization argue it fosters resilience and national security. A few consequences of a less connected world include:
Reduced Economic Growth: Less trade and investment limit economic growth, reducing access to new markets, innovation, and competition. The slower-than-expected global GDP growth rate in 2024 and 2025 is attributed to increasing trade barriers and economic fragmentation.
Inequality: Deglobalization can accentuate inequality, as protectionist measures often benefit certain industries and elites at the expense of consumers and workers. The erosion of global value chains affect developing countries relying on exports for economic growth.
Geopolitical Instability: Nations become more isolated and prone to conflict. Breakdown of international cooperation can impair efforts to address global challenges like climate change, pandemics, and poverty.
Globalization can also affect space exploration. The International Space Station (ISS) is a microcommunity of European, Canadian, Russian, US and other astronauts working together to gain understanding of our world. China pursues its own successful space program.
This raises concerns over who owns what in space, which international laws apply to situations such as space junk and increasing commercial interests, and whether borders exist high above the Earth.
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