New Delhi, Dec. 24 -- What is friendshoring? Globalisation isn't ending, it's being selectively redesigned. As tariffs, export controls and geopolitical risk rise, Ernst & Young predicts that friendshoring and mini-lateral trade deals will dominate supply chains in 2026, favouring trusted partners over the cheapest producers.

In its 2026 Geostrategic Outlook report, EY argues that world trade growth is expected to slow sharply next year, with North America likely to make a negative contribution for the second consecutive year. Rather than a sudden collapse in trade, the firm foresees a recalibration: governments privileging resilience, security and domestic capacity over efficiency and openness.

This projection aligns with real-world da...