A new report from the McKinsey Global Institute reveals that geopolitical tensions are reshaping global trade patterns, with the United States and China at the center of the realignment. The analysis, which examines trade data through 2024, shows that economies are increasingly trading more with geopolitically aligned partners and less with rivals.
The report cites ongoing U.S.-China trade tensions and Russia’s invasion of Ukraine as key drivers of the trend. “The most significant ongoing shift...