The balance of global economic power has shifted, says US economist Richard Wolff, warning that the United States and its G7 allies are no longer the world's dominant bloc. "We peaked about 12–15 years ago, and we are on the way down," he said, pointing out that the G7's combined GDP is now 28% of world output, while China and the BRICS nations control 35%.
"This is new. We're not the wealthiest bloc anymore — we're number two. And that changes everything," he said.
On trade and industry, Wolff highlighted the rise of Chinese electric vehicle maker BYD, which he described as producing "the best quality, cheapest electric cars and trucks." While BYD models are widely visible across Europe and emerging markets, US tariffs have kept them out of the American market.
That move protects domestic players like Tesla, GM and Ford, Wolff explained, but added that it could hurt US competitiveness globally. "Everywhere else in the world, companies can buy BYD trucks at lower prices. That allows them to undercut American rivals, and in the long run, Americans will lose jobs," he said.
Military presence cannot reverse the shift, Wolff argued. "You can put the Seventh Fleet in the South China Sea, but it isn't going to change that," he said.
Recently, Trump had threatened an additional 10% tariff on nations that continue purchasing Russian oil — a policy aimed squarely at BRICS countries, including India.
Such a move would likely hit price-sensitive sectors hard, especially those relying on the US market. Industries such as automotive components and pharmaceuticals, where cost efficiency is critical, could see reduced demand and narrowing margins.
Despite months of back-and-forth, India and the US have yet to finalise an interim or "mini" trade agreement. The lack of a formal pact leaves Indian exports vulnerable to further unilateral actions.
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