Economic theorist Jeremy Rifkin highlights how AI-driven 3D printing is transforming global trade by enabling tariff-free, local production through digital file sharing. This additive manufacturing model reduces costs, emissions, and supply chain dependency. Rifkin sees this shift as central to the emerging Third Industrial Revolution, favouring distributed, glocalised economies led by SMEs and supported by bioregional governance.
In a detailed assessment of global trade and technological evolution, renowned economic theorist Jeremy Rifkin highlights how AI-directed 3D printing is reshaping the global economy by rendering traditional tariffs ineffective and fundamentally changing the structure of commerce and governance. Rifkin argues that the ongoing shift from subtractive to additive manufacturing represents the core of a new Third Industrial Revolution—one that is distributed, glocalised, and environmentally responsive.
On April 2nd, the White House issued a statement indicating plans to impose reciprocal tariffs based on the obligations of other nations. Rifkin, however, asserts that this geopolitical strategy is bound to fail in light of emerging additive manufacturing technologies. “Companies are bypassing tariffs by shipping digital software files of 3D printed products at near zero marginal cost,” he explains. “Unlike physical goods, the transfer of digital software files used in additive manufacturing are not subject to tariffs.”
Additive manufacturing reduces costs and environmental impact
AI-powered additive manufacturing allows global firms and SMEs to send product files digitally to local vendors, who then produce the goods on-site. This method eliminates the need for long-distance transportation, cutting down costs and lead times while also significantly reducing greenhouse gas emissions.
According to Rifkin, in 2024, global logistics costs reached $12.8 trillion, constituting 11.6% of the $110 trillion global GDP. “Streamlining the ports” through additive manufacturing would lead to a substantial decrease in emissions, given that shipping and logistics account for 11% of total greenhouse gas emissions. Comparatively, agriculture and industrial sectors each contribute 11%, with fossil fuel production adding 10%.
Deloitte has previously reported that 3D printing can reduce lead times by 40–90%, demonstrating its practical advantages in urgent scenarios such as pandemic-related supply disruptions.
Transitioning from centralised production to localised networks
Historically, subtractive manufacturing dominated the First and Second Industrial Revolutions, using material-intensive and waste-heavy production methods. Additive manufacturing, in contrast, constructs products layer by layer with near-zero waste. Rifkin cites examples such as the construction of a 3D printed clay house by architect Mario Cucinella, completed with locally sourced materials in 200 hours, as a model of sustainable and responsive housing in crisis zones.
Additive manufacturing also allows companies to move away from seller-buyer markets and into provider-user networks. For instance, Cucinella can distribute his architectural software globally at minimal cost, enabling local developers to construct buildings on demand while paying licensing fees, rather than engaging in traditional manufacturing and shipping.
The model favours small and medium-sized enterprises (SMEs), offering faster turnaround, reduced inventories, and adaptability to local needs. In Japan, a new train station was built using additive methods in just six hours—an operation that would typically take two months using older techniques.
Rapid global adoption and exponential growth
Rifkin identifies over 1,750 fab labs operating across 90 countries, many housed within universities, providing AI-enabled 3D printing services. Fortune 500 companies such as Airbus, Siemens, Volkswagen, Boeing, and SAP are also investing heavily in these technologies. SAP, in fact, has become Europe’s most valuable company due to its leadership in additive manufacturing.
SMEs leveraging this model reduce the upfront costs of research, procurement, and marketing, enabling them to scale globally while avoiding the traditional burdens of logistics and tariffs. The ING Bank has projected that 3D printing could reduce global trade by 40% by 2040 if current trends continue.
The rise of bioregional governance and new political models
Rifkin introduces the idea of “bioregional governance,” a political model aligned with the decentralised nature of the Third Industrial Revolution. As AI-driven additive manufacturing becomes localised, political and economic governance is shifting to regional cooperation models. The Pacific Northwest Economic Region (PNWER) in the US and Canada, and the Great Lakes and St. Lawrence Governors and Premiers Conference, are examples of such collaborative frameworks focused on ecosystem stewardship.
Rifkin states, “The lesson is learning how to adapt to the planetary hydrosphere rather than adapting the hydrosphere to our whims,” advocating for a new worldview that rebrands Earth as “Planet Aqua” to reflect its water-based nature.
Towards a distributed infrastructure and edge AI
The future economic model, according to Rifkin, lies in a distributed infrastructure integrating communication, energy, mobility, and water systems. These systems rely on the Internet of Things (IoT), smart grids, and renewable energy sources to manage operations in real-time.
He describes the convergence of four internets:
- A communication internet
- A digitised electricity internet
- A logistics and mobility internet
- A water internet
Together, these internets use AI, data analytics, and edge computing to synchronise daily life, trade, and governance at the local level. Centralised cloud-based AI is now giving way to edge data centres, driven by the need for low-latency responses, such as with autonomous vehicles.
Rifkin asserts, “Distributed edge data centres are all about reducing costs and empowering present and future generations to live in a more equitable world.”
Democratising the economy through glocalisation
In this emerging economic model, high-tech SMEs are more agile and resilient compared to centralised global corporations. Globally, SMEs comprise 90% of businesses, employ more than half the world’s workforce, and contribute significantly to GDP. In the EU, they account for 99.8% of non-financial businesses and 52% of the GDP. In the US, they represent 99.9% of businesses and nearly half of employment.
Attempts to regulate or tariff this digital flow of goods will likely be ineffective. Rifkin concludes, “The market is there and there’s no going back.”
From growth to flourishing
Rifkin urges a shift from the values of the Second Industrial Revolution—growth, centralisation, and productivity, toward the Third Industrial Revolution’s focus on circularity, quality of life, and glocalised networks. “The Third Industrial Revolution bolsters flourishing,” he says, contrasting it with the zero-sum game of previous eras.
With additive manufacturing now entering the mainstream, supported by trade bodies, academic incubators, and private innovation, Rifkin sees a clear trajectory ahead. “The laterally integrated additive manufacturing revolution of the 21st century is unstoppable,” he says. “It will likely surpass and replace the vertically integrated Second Industrial Revolution platform well before mid-century.”
About Jeremy Rifkin
Jeremy Rifkin is an economic theorist and the author of 23 books, including The Zero Marginal Cost Society. His latest book, Planet Aqua: Rethinking Our Home in the Universe, is now available globally. He has advised the European Union, China, and the US government on economic policy and is ranked among the top ten most influential economic thinkers by The Huffington Post.
Himani Verma is a seasoned content writer and SEO expert, with experience in digital media. She has held various senior writing positions at enterprises like CloudTDMS (Synthetic Data Factory), Barrownz Group, and ATZA. Himani has also been Editorial Writer at Hindustan Time, a leading Indian English language news platform. She excels in content creation, proofreading, and editing, ensuring that every piece is polished and impactful. Her expertise in crafting SEO-friendly content for multiple verticals of businesses, including technology, healthcare, finance, sports, innovation, and more.
