Price of Prosperity: How Trade Built—And Divided—the World

On a quiet morning in 2025, a tweet from President Trump sent global markets into chaos. Within minutes, auto stocks crashed, EU leaders threatened retaliation, and a new chapter in economic warfare began...

- Ruchira Talapatra

International trade has long been a transformative force, reshaping economies, societies, and political landscapes across the globe. From ancient barter systems to today's intricate global supply chains, the exchange of goods and services across borders has been instrumental in driving prosperity, fostering cultural exchange, and, at times, inciting conflict. As of April 1, 2025, the implementation of new tariffs by President Donald Trump underscores the enduring significance of trade policies in influencing international relations and the global economic order.

Ancient Trade Routes
In 140 BCE, a Chinese diplomat named Zhang Qian was captured by nomads. Thirteen years later, he returned not just with tales of distant lands—but with the seeds of what would become the Silk Road, forever changing global commerce.

The foundations of international trade trace back to ancient civilizations engaging in the exchange of goods such as spices, textiles, and precious metals. The Silk Road, established around 130 BCE, is among the most renowned trade routes, connecting the East and West. This network facilitated commerce and the exchange of ideas, technologies, and cultures. Goods like silk from China were traded for wool, silver, and gold from Europe. The Silk Road's significance lies in its role in fostering economic interdependence and cultural diffusion among distant societies.

Colonial Expansion
Between the 16th and 18th centuries, mercantilism dominated European economic thought. Nations sought to accumulate wealth by maximizing exports and minimizing imports, leading to the establishment of colonies to secure resources and markets. This era saw intense competition among European powers, resulting in colonial conquests and conflicts driven by the pursuit of economic dominance. The mercantilist system often led to exploitation and was a precursor to modern economic theories advocating free trade.