Deglobalization pushes up prices and reshapes supply chains worldwide

Analysts say the ongoing trend of deglobalization is shifting global trade, prompting governments and firms to prioritize supply‑chain security over cost efficiency. This pivot is expected to raise consumer prices, especially for energy and goods reliant on long‑distance transport, as companies onshore or friend‑shore critical materials such as semiconductors, pharmaceuticals and rare‑earth minerals.

The analysis highlights that geopolitical tensions—including the U.S. conflict with Iran and broader East‑West policy divides—are accelerating the move away from the 30‑year post‑Cold‑War era of deep economic integration. While the focus on resilience may reduce the risk of shortages, it also diminishes the disinflationary benefits that globalization once provided, leading to more volatile and higher prices for households.