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ENB Pub Note: The following is an outstanding article from Armando Cavanha, from Brazil. He is a true energy leader and a friend of the Energy News Beat podcast. His opinions on the global tariff war and the perspective of power are spot on. If you have listened to my podcasts with George McMillon, you would be able to see how spot on Armando’s article is. I recommend following Armando on LinkedIn here: https://www.linkedin.com/in/cavanha/
Trade tariffs are often seen as the crux of today’s economic conflicts, but they are merely symptoms of a deeper struggle involving technological dominance, maritime control, and geopolitical sovereignty. The real confrontation is not just about trade — it is about POWER.
Luiz Roberto Cunha added the historical perspective of outsourcing. In a move that was more economic than strategic, the US moved its factories to China in the 1970s, creating sectoral unemployment and union complaints at the time.
Under the liberal economic model, they have long outsourced their industrial base to China, creating deep dependencies on foreign production and technology. This deindustrialization has fueled a financial bubble sustained by consumer debt, which is now showing signs of instability with rising bankruptcies and defaults.
Meanwhile, China has transformed itself from a hub for cheap labor to a global technology powerhouse. Through strategic alignment of education and industry, China is fostering decentralized innovation in vital sectors such as semiconductors, rare earths, and communications. This shift threatens U.S. dominance.
China has learned to innovate, design, and engineer what it previously received ready-made from the US. It has incorporated the upstream and downstream phases of manufacturing through valuable and orchestrated logistics. And, fundamentally, it has created an ecosystem of local suppliers and sub-suppliers, reducing any external dependence.
One of the less visible but more strategic battlegrounds is maritime control. From ports to shipping lanes, nations are vying for dominance. China’s diplomatic blockade of BlackRock ’s attempt to acquire ports in Panama illustrates this quiet struggle. The U.S., frustrated by these setbacks, is resorting to tariffs in an attempt to regain lost sovereignty and industrial strength.
China’s maritime history and military investments have made it a formidable naval force, influencing not only shipping but also international regulations. The Trump-era tariffs were not random—they were an urgent response to a broken system, a last-ditch effort to protect what remains of American manufacturing and logistics control.
U.S. tech companies are now facing massive losses and relying on supply chains dominated by China. Restructuring that dependence will take years. At the same time, China’s global partnerships, from Russia to Europe, further solidify its geopolitical influence.
The Arctic has become the new frontier, with China, Russia and the US competing for resources, routes and influence. Nations like Turkey demonstrate how geography and diplomacy can be leveraged to gain power in this evolving landscape.
Ultimately, the tariffs are just a superficial skirmish. The real battle lies in control of the seas, technology, and international law. America’s challenge now is to rebuild its domestic capabilities and reassert sovereignty in a world it has helped to outsource. This is more than a trade war—it is a fight for the future of nations.
The post Beyond Tariffs: The Real Struggle for Global Power appeared first on Energy News Beat.
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