We are witnessing a fundamental shift in the world order. A new reality is developing based on economic power. The idea that America can or should support the global economy by unconditionally sharing its prosperity through free-trade globalization is dead.
The benefits of global economic efficiency driven by open markets have been abused by countries that obtain the benefits without reciprocating and honestly opening up their markets. Much worse, countries have used the economic benefits they gained through globalization to militarize and threaten the very countries providing them with trade benefits.
Consider China. Since China’s entry into the World Trade Organization in 2001, it has gained a $6 trillion dollar trade surplus from America. America received lower-cost products, but what did China do with the “extra” $6 trillion? Did it buy US products? Did it open up its markets? No. It built up its military and is doing everything it can to oppose vital US interests. You might think China would at least name its new aircraft carriers the SS Walmart or SS Amazon.
The bottom line is that since 2020, America has been providing some $300 billion a year to China. Free trade without reciprocal fair trade is a disaster and a clear and present danger to the security of the United States. Trade is now weaponized with sanctions and tariffs. Economic warfare is the order of the day.
President Donald Trump’s transactional approach to trade is easy to understand. If countries wish to benefit from US prosperity, they must reciprocate and trade fairly with the US. There will be no free trade without fair trade.
The diamond trade is a ping-pong ball in an ocean of change. Right now, uncertainty dominates as we move to a new transactional world order. If you want to know what will happen to the diamond trade, just follow the money. Diamonds are a luxury product for wealthy people.
America is the richest country in the world. It is the biggest and best country for diamonds. It provides the greatest growth opportunity for developing countries that align themselves with US political, social, economic and security interests.
“America First” is not just about a new world order; it is about the future of the diamond trade.
