US President Donald Trump (left) with China President Xi Jinping at the Apec Summit in South Korea on Oct 30. Trump’s additional tariff on countries doing business with Iran could spark retaliation from Beijing, the primary purchaser of Iranian oil. PHOTO: NYTIMESGEOECONOMICS has emerged as a central concept to explain the volatility and complexity of today’s global landscape. It highlights the use of tariffs, sanctions and wider financial measures as tools of statecraft – measures now increasingly paired with the threat of military action. While these trends pre-date the second Trump administration, US President Donald Trump has personified them in 2025 and 2026, reshaping the global political economy.