When Trade Turns Hostile: The Rise of Economic Weaponry
Why the World Needs a Strategic Ethical Framework—Now More Than Ever
DR SHAYA'A OTHMAN,
Senior Academic Fellow,
International Institute of Islamic Thought, USA
East and South East Asia Regional Centre
IIIU, Kuala Lumpur, Malaysia
Global trade is no longer a cooperative endeavour—it’s becoming a battleground.
Tariffs, once tools of economic regulation, are now deployed as weapons in geopolitical power plays. The fallout is severe: disrupted supply chains, inflationary shocks, and a breakdown of trust between nations.
This is not just a trade war.
It is a war on trust, stability, and shared prosperity.
Institutional Paralysis
Multilateral bodies like the World Trade Organisation (WTO) and regional alliances such as the EU and ASEAN were designed to prevent economic escalation. Yet today, they appear paralysed—unable to mediate disputes, reform broken systems, or restore balance.
Free trade agreements ring hollow when tariffs are used to punish rather than protect.
A Proven Alternative: Islamic Finance in 2008
During the Global Financial Crisis of 2008, Islamic financial institutions demonstrated remarkable resilience. Rooted in ethical principles, risk-sharing, and real economic value, they offered stability when conventional systems faltered.
This was not a coincidence.
It was the operationalisation of Maqasid al-Shariah.
Maqasid al-Shariah: A Strategic Framework for Global Stability
Maqasid al-Shariah—the higher objectives of Islamic law—offers more than moral guidance. It provides a strategic framework for economic policy that prioritises:
- Protection of Religion by aligning human activities with faith
- Preservation of Life by preventing economic collapse
- Promotion of Intellect by educational development with ethics, harmony and justice de
- Protection of Offspring by ensuring a humanistic human family lifestyle
- Protection of Wealth by fairness and transparency
This framework is not limited to Muslims.
It is universally applicable, rooted in values that resonate across cultures and systems.
A Call to Rethink Global Trade Strategy
If trade wars are the symptom, then ethical strategy is the cure. It is time to move beyond reactive tariffs and toward proactive, principled policy.
Maqasid al-Shariah is not just theology—it is strategy.
And it may be the only one capable of restoring balance in a world on edge.
Join the Conversation
Can ethical strategy truly reshape global trade?
Your insights could shape the next chapter—literally.
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