By Amanda Groves, Senior Correspondent
Despite escalating tariffs and geopolitical tensions, global trade continues to thrive, according to Ken Lee, Asia Pacific CEO of DHL Express. While protectionist policies and uncertain trade relations, particularly between the U.S. and China, have stirred fears of “deglobalization,” Lee stresses that globalization remains resilient. The company observes ongoing trade activity and robust global flows, supported by its internal research and global logistics trends indicating that a majority of the global economy is still advancing along globalization tracks.
Global Trade’s Enduring Strength
Ken Lee emphasizes that despite the complexities introduced by tariffs and political strains, the movement of goods across borders persists. “The tariff situation has created additional uncertainties and complexities… But companies continue to trade, and goods continue to move from one point to another,” Lee stated.
DHL’s recent assessments show that while certain sectors are affected by protectionist policies, overall trade levels remain strong. International shipments, cross-border e-commerce, and business logistics continue to post year-on-year growth across various regions.
In many instances, companies have developed agile strategies to cope with new regulatory landscapes. Businesses are responding with diversified sourcing strategies and digitalized supply chains, allowing them to maintain international market connections.
Dual-Track Globalization: A Nuanced Perspective
Industry analysts suggest that the world may be entering a phase of “dual-track globalization.” While sectors tied to national security and sensitive technologies are experiencing a retreat from globalization, the broader global economy remains interconnected.
This view holds that essential goods, consumer electronics, and e-commerce still rely heavily on global supply chains. These sectors, less susceptible to geopolitical friction, continue to benefit from efficiency and cost-effectiveness through international trade.
Companies are therefore pursuing parallel strategies: safeguarding critical technology and national security interests on one hand while encouraging open global commerce on the other. This duality has allowed globalization to persist in key sectors despite broader trade restrictions.
Strategic Shifts and Emerging Markets
As trade routes evolve, businesses are increasingly turning to emerging markets to mitigate risk. Countries such as Vietnam and Indonesia are experiencing surges in foreign direct investment due to their strategic locations and favorable trade policies.
Vietnam has emerged as a manufacturing hub, attracting multinational companies seeking alternatives to China. Similarly, Indonesia’s large workforce and growing infrastructure make it an attractive destination for global firms.
DHL has responded to these shifts by expanding operations in 20 markets positioned to benefit from nearshoring and reshoring trends. Seven of these are located in Asia, underscoring the region’s growing influence in global logistics.
This expansion includes new logistics hubs, increased air cargo capacity, and investments in last-mile delivery services. These enhancements aim to streamline operations and bolster trade links between regions.
Implications for the U.S. Economy
While trade tensions between the U.S. and China have captured headlines, their actual impact on global trade is relatively limited. Trade between the two countries represents a small portion of the world’s international transactions.
American businesses stand to benefit from the continued strength of globalization. By diversifying supply chains and tapping into emerging markets, U.S. firms can reduce dependency on any single region and enhance resilience.
This strategy not only mitigates risks from geopolitical tensions but also positions American companies to access new consumer bases and growth opportunities in fast-developing economies.
Furthermore, the U.S. logistics industry is adjusting to these global shifts by investing in automation, digital platforms, and smarter warehousing to accommodate diversified international trade patterns.
Outlook: Resilience Through Adaptation
Despite the hurdles, globalization shows remarkable endurance. Trade flows are adapting rather than contracting, supported by technological innovation and strategic reallocation of resources.
Ken Lee concludes that globalization is far too integrated into the modern economy to be easily reversed. “Globalization is not ending; it’s evolving. Companies must be agile, adaptable, and forward-thinking.”
This perspective reflects a broader consensus among global logistics and trade leaders who view the current challenges not as an end to globalization but as a transformative phase that could lead to more balanced and sustainable global commerce.
