Citi’s Strategic Hire of Lighthizer Signals Shifting Winds in Global Trade Wars

The news that Citigroup hired Robert Lighthizer, Donald Trump’s former U.S. Trade Representative, as a senior adviser on global trade in 2025 underscores a critical shift in how corporations are preparing for the enduring fallout of protectionist policies. Lighthizer, a central architect of Trump’s “America First” trade strategy—including the imposition of tariffs on Chinese imports and the renegotiation of NAFTA into USMCA—now brings his expertise to one of the world’s largest banks. This move isn’t merely about leveraging past policy insights; it reflects a strategic bet on the permanence of trade tensions and the need for corporations to navigate an increasingly fragmented global economy.

Why Lighthizer’s Hire Matters

Lighthizer’s appointment signals that Citigroup views trade policy as a core driver of risk and opportunity for multinational clients. The tariffs he helped design under Trump—such as the 25% levy on Chinese steel and 10% tariff on $200 billion of Chinese goods—created prolonged volatility in global supply chains. Even as the Biden administration dialed back some of these measures, the scars remain: reveal a 20% decline in bilateral trade by 2025, with companies still grappling with higher costs and fragmented supplier networks.

Citigroup’s decision to bring in Lighthizer suggests it expects these disruptions to persist. His role will likely focus on advising clients on hedging against policy shifts, renegotiating trade agreements, and exploiting market gaps created by protectionism. This is no small task: shows the bank has lagged peers amid rising macroeconomic uncertainty, suggesting investors are pricing in risks tied to global trade bottlenecks.

The Broader Trade Landscape

Lighthizer’s influence extends beyond his direct advisory role. As a mentor to current U.S. Trade Representative Jamieson Greer, his fingerprints remain on Washington’s approach to trade. This continuity hints that U.S. policy will remain skeptical of multilateral frameworks like the WTO, favoring bilateral deals instead. For Citigroup, this means clients—particularly in manufacturing and logistics—will need guidance on navigating tariffs, quotas, and the growing divide between U.S.-aligned and China-centric supply chains.

Meanwhile, the global trade regime is fraying. The EU’s recent imposition of carbon border taxes, India’s aggressive import substitution push, and the U.S.’s focus on nearshoring have created a “splinternet” of trade blocs. would illustrate how once-fluid markets are now segmented by protectionist measures. In this environment, banks like Citi that offer deep policy insight could gain an edge in attracting multinational clients seeking to minimize exposure.

Investment Implications

For investors, Lighthizer’s hire is a barometer of the risks and rewards in global trade. Sectors like industrials, tech, and autos—highly exposed to tariffs—may see increased volatility, while financial institutions with trade expertise could benefit. Citigroup’s move also suggests a longer-term opportunity in “trade resilience” plays: companies investing in localized supply chains or diversifying markets away from geopolitical flashpoints.

Crucially, the data paints a grim picture for free trade optimists. The World Trade Organization’s 2024 report noted that 90% of new trade restrictions implemented since 2018 remain in place, with no signs of rollback. Meanwhile, shows annualized growth dropping from 5% before Trump’s tariffs to just 1.5% in 2024. This stagnation isn’t just an economic headwind—it’s a structural shift favoring firms that can parse policy shifts.

Conclusion: Navigating the New Trade Reality

Citigroup’s hiring of Lighthizer is more than a corporate move—it’s a statement about the permanence of trade fragmentation. With tariffs, quotas, and geopolitical rivalries now defining global commerce, institutions and investors must treat trade policy as a core risk factor. For Citigroup, Lighthizer’s expertise could position it as a go-to advisor for clients seeking to thrive in this environment.

But the broader lesson is clear: the era of free-flowing globalization is over. Investors should focus on companies with diversified supply chains, exposure to trade corridors insulated from tariffs, or, like Citi, the capacity to interpret and navigate the labyrinth of protectionist policies. In 2025, success isn’t about betting on the return of open markets—it’s about thriving in the new normal of trade wars.