When trade barriers redirect commerce flows, exporters face real pressure from shifting market dynamics. Picture this: a major exporter suddenly loses preference in one market. What's their next move? Push their government hard to negotiate new trade agreements elsewhere.

This domino effect gains momentum as more competitors get squeezed the same way. Each exporter demands that their government level the playing field by securing better terms in untapped markets. The result? A cascade of new regional deals and trade blocs forming rapidly.

Why this matters for markets: These policy shifts create uncertainty in global supply chains, impact currency flows, and influence which assets perform best in different economic cycles. Understanding these trade realignments helps explain broader market sentiment and capital allocation strategies.