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U.S. tariff policies are compelling global partners to establish new trade alliances, leading to supply chain diversification away from the United States and increasing the risk of American economic isolation. This shift is marked by rising consumer costs and strategic pivots by former key trading partners.
Record holiday shopping figures are masking underlying economic pressure. Retailers, having absorbed tariff-related costs to maintain holiday pricing, are now signaling significant, broad-based price increases for consumers in early 2026.