Someone Needs to tell @POTUS What the Global Supply Chain Is
In an increasingly interconnected world, the concept of the global supply chain is not just a technicality of international trade, it is the backbone of modern economic stability and growth. The recent moves by the President of the United States (@POTUS) to impose or threaten sweeping tariffs reveal either a deep misunderstanding or a willful disregard for the principles that govern global commerce, especially the foundational concept of the Total Cost of Ownership (TCO) in supply decisions.
Someone urgently needs to explain to him, and the administration, the fragile, intricately woven nature of the global supply chain and how sudden protectionist shocks can reverberate through economies far beyond intended targets.
The global supply chain refers to the worldwide system of production and distribution where goods are manufactured in multiple countries before reaching the final consumer. A smartphone may contain parts made in Japan, software developed in India, be assembled in Vietnam, and sold in the U.S. This system is not the result of political fiat or corporate ideology; it’s the result of decades of cost optimization, efficiency-driven design, and cooperative international logistics. Each country contributes based on its comparative advantages, be it labor costs, technical know-how, or raw materials availability.
Global supply chains are not just about labor arbitrage. They are designed to deliver the lowest Total Cost of Ownership (TCO), a metric that incorporates not only the purchase price of a good or component, but also transportation costs, quality assurance, delivery time, currency risks, service support, and geopolitical stability. It is a complex calculus that multinational companies perform to stay competitive and sustainable.
The imposition of high and unpredictable tariffs may appear, politically, as a bold move to “protect domestic jobs” or “punish unfair trade practices,” but in economic terms, it is akin to blowing up a bridge because it has traffic from a competitor. Protectionism ignores the nuanced reality of the global supply web: that products are not “foreign” or “domestic” in any binary way anymore. Most goods are hybrids of international cooperation, and attacking one link in the chain damages the whole structure.
When governments, especially major economies like the U.S., deploy surprise tariffs, they introduce uncertainty that distorts planning cycles, investment decisions, and pricing models. Suppliers pull out. Manufacturers seek alternative production sites, which often take years to establish. Strategic trust evaporates. Importers hoard, exporters scramble, and customers pay the price. The end result is not domestic strength, but systemic inefficiency, inflationary pressure, and diplomatic retaliation.
More broadly, trust is the currency of international trade. When the largest economy in the world proves unpredictable, businesses start to plan for worst-case scenarios. Contracts are renegotiated with risk premiums. Insurance costs rise. Countries reorient their trade strategies to reduce reliance on unpredictable partners. This, in turn, accelerates deglobalization, drives fragmentation, and encourages regional blocs that are more politically aligned but economically less efficient.
The President’s role in shaping trade policy should be informed by strategic long-term thinking, not populist instincts. Leaders must grasp that the global supply chain is not a zero-sum game but a mutual ecosystem. Reshoring, friendshoring, nearshoring, and diversification may be necessary in some critical sectors (e.g., semiconductors, pharmaceuticals), but they should be guided by risk analysis and cost-benefit models, not bluster.
The United States, with its innovation engine, regulatory maturity, and vast market, is uniquely positioned to lead on global standards, fair trade enforcement, and sustainable supply practices. But that leadership cannot be based on tariff tantrums or economic nationalism. It must be grounded in respect for multilateralism, global cost structures, and the collaborative nature of modern production.
Someone needs to tell @POTUS that the global supply chain is not a bargaining chip, it is the very infrastructure of global commerce. Disregarding the principles of TCO and the importance of global participation leads to widespread losses, erodes trust, and fuels years of cross-border tension. The modern economy depends on integration, not isolation. The sooner our leaders understand that, the more secure, prosperous, and stable the world will be.