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Monday, November 10, 2025

Small Economy Vulnerabilities Exposed by Great Power Trade Wars

The current trade dispute exposes particular vulnerabilities that small economies face when caught between great power competition. These countries lack individual bargaining power while bearing disproportionate costs from broader conflicts beyond their control.

Ireland’s emphasis on job protection and Belgium’s call for proportionate responses reflect how smaller countries must balance loyalty to collective positions with protection of specific national vulnerabilities. These calculations differ significantly from those facing larger powers.

Small economy experiences illustrate broader challenges in maintaining multilateral cooperation when bilateral relationships between major powers deteriorate. These countries depend on stable international frameworks that larger powers may be willing to sacrifice.

The small economy dimension demonstrates how trade wars create systemic effects that extend far beyond the primary combatants. This reality suggests needs for international mechanisms that protect smaller countries from great power conflicts.

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