Congress has significantly expanded presidential tariff authority by passing the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, allowing the executive to impose up to 100% tariffs on key buyers of Russian energy and sanctions enablers. The article argues that this legislation represents a dangerous abdication of Congress's Article I authority, as it grants the executive vast, discretionary power without specifying criteria for enforcement. Historically, the executive could claim tariffs were its own doing; however, by writing and passing this new authority, Congress now owns the resulting trade policy and its economic consequences. This shift implies that future tariffs will be viewed by the public as a direct legislative action, potentially undermining the administration's credibility and creating political vulnerability.
Global trade imbalances have changed since the 2008 financial crisis. Now they reflect new risks
English Summary
This Chatham House analysis argues that global trade imbalances have fundamentally shifted since the 2008 financial crisis, moving beyond debt-fueled consumer excess to reflect new geopolitical and competitive risks. Evidence shows a narrowing US deficit alongside a rising Chinese surplus, driven by shifts in energy production and China’s ascendancy in global manufacturing. The primary risks now center on intensifying competition from Chinese firms, particularly impacting European industries like automotive and machinery, alongside the broader geopolitical implications of China’s economic dominance. Policy strategies must adapt to address these evolving imbalances, considering exchange rate adjustments and fostering industrial resilience.
中文摘要
本報告由智庫撰寫，認為自2008年金融危機以來，全球貿易失衡格局發生了根本性轉變，已不再僅僅是基於債務推動的消費者浪潮，而是反映了新的地緣政治和競爭風險。 數據顯示，美國赤字正在收窄，而中國的盈餘正在增加，這主要受到能源生產轉型以及中國在全球製造業崛起帶來的影響。 目前的主要風險集中在中國企業的日益激烈的競爭，特別對歐洲的汽車和機械產業產生影響，以及中國經濟主導地位所帶來的更廣泛的地緣政治影響。 政策應當適應這些不斷演變的失衡，考慮到匯率調整以及促進產業韌性。
Related Entries
-
1.
-
2.
Cuba is on a trajectory toward an accelerating state and economic collapse, risking a point of no return. The state is deteriorating into "authoritarian anarchy," retaining its capacity for political repression but losing the ability to provide basic public services like health and safety. Economically, while the private sector is growing, this expansion is highly unequal, fueling cronyism and widening class gaps between the elite and the poor. If the current trend continues, the country risks calcifying these defects into a dysfunctional baseline, severely diminishing the chances of a stable, democratic transition.
-
3.
The article argues that China's ongoing purges are not signs of weakness, but rather a sophisticated, historically rooted process of 'rectification' that strengthens the CCP's grip on power. This mechanism requires cadres to submit mandatory self-criticisms and build permanent, detailed personnel files (dossiers). This system of record-keeping is the CCP's primary source of resilience, creating profound, internalized discipline that controls internal dissent. Policymakers must recognize that the regime's durability stems from this deep internal control mechanism, making succession—rather than internal purges—the ultimate strategic vulnerability.
-
4.
The analysis argues that contemporary warfare is marked by a return to great power competition, often fueled by strategic hubris and historical overconfidence. A key failure across modern conflicts is the 'short-war fallacy'—the assumption that overwhelming military force guarantees a quick, decisive victory. This mindset blinds policymakers to the need for sustained resource mobilization and complex political outcomes. Consequently, effective strategy requires linking military objectives with clear, comprehensive political goals, rather than pursuing rapid, decisive regime changes or military victories in isolation.
-
5.
The report argues that the rapid integration of AI creates novel and complex risks—such as deepfakes, misinformation, and intellectual property disputes—that do not fit within existing insurance lines, challenging the technology's overall insurability. Evidence shows that while lawsuits center on IP, the scope of harm is expanding into privacy and product liability, and insurers are responding unevenly with a mix of exclusions and limited coverage. Policymakers must therefore focus on managing systemic, correlated AI risks, including shared model dependencies and universal attacks, to prevent market failure and guide necessary regulatory oversight.