Who Holds Power in a Coercive Global Trading System?

Krugman introduces the concept of weaponized interdependence—the idea that states can wield economic power by controlling global networks (such as the dollar system, critical resources, and tariff regimes)—and argues this geoeconomic lens explains why trade is increasingly used as a coercive tool. He cites examples like Iran’s Strait of Hormuz and China’s rare-earth leverage, discusses the growing geoeconomics literature, and outlines five core questions to assess who holds power in today’s economy and how trade operates in a weaponized world.