Definition #

Economic nationalism is a policy approach in which governments prioritize national economic interests over global integration. It often involves protectionist trade policies, subsidies for domestic industries, restrictions on foreign ownership, and efforts to reduce reliance on imports. At its core, it reflects the idea that economic strength is directly tied to national security and sovereignty.

Historical Context #

Economic nationalism is not new. In the 19th and early 20th centuries, many countries used tariffs to protect domestic industries while building national economies. After World War II, globalization and free trade became dominant, but the 2008 financial crisis reignited skepticism about global interdependence. More recently, the COVID-19 pandemic and geopolitical tensions have further accelerated the trend, as nations realized the risks of overdependence on foreign supply chains.

Practical Examples #

The United States under Donald Trump embraced economic nationalism through the “America First” doctrine, imposing tariffs on Chinese goods and renegotiating trade deals like NAFTA. India has promoted its “Make in India” campaign to boost domestic manufacturing and reduce reliance on imports. In Europe, discussions around “strategic autonomy” increasingly push for reshoring critical industries, particularly in semiconductors and defense. Meanwhile, China combines state subsidies and industrial policy to strengthen its domestic champions in areas like technology and renewable energy.

Current Relevance #

Economic nationalism is particularly significant today because globalization is facing pushback. Supply chain disruptions, the weaponization of trade (such as sanctions), and the global race for critical technologies have forced states to rethink their dependencies. Instead of relying solely on global markets, countries now see economic independence as a form of strategic security. This shift is also visible in the push for “friend-shoring,” where supply chains are relocated to allied nations instead of rivals.

Future Outlook #

Economic nationalism will continue shaping global trade and investment patterns. As technological competition intensifies and resource scarcity grows, governments will likely expand protectionist policies. The challenge will be balancing national interests with the benefits of international cooperation.