What Trump's trade war means for 'friendshoring'

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What Trump's trade war means for 'friendshoring'

^{Published on 2025-02-05 17:42:26 - Politico}

Colloquially known as "friendshoring," the policy is a way to hedge major industries like technology against big supply shocks, while reducing dependence on China and boxing out Beijing in the global competition for economic influence.

The article from Politico's Digital Future Daily discusses the potential implications of Donald Trump's proposed trade policies should he return to office. Trump has suggested implementing a 10 percent tariff on all imports and a 60 percent tariff on Chinese goods, aiming to reduce the U.S. trade deficit and boost domestic manufacturing. These policies could significantly impact global trade dynamics, potentially leading to retaliatory measures from other countries. The article highlights concerns from industry leaders about the effects on supply chains, particularly in the tech sector, where companies like Intel and TSMC have invested heavily in U.S. manufacturing due to previous incentives like the CHIPS Act. There's also mention of the broader economic strategy known as "friendshoring," where the U.S. seeks to strengthen trade relations with allies to diversify away from reliance on China. However, Trump's aggressive tariff plans could disrupt these efforts, leading to increased costs for consumers and businesses, and possibly triggering a new wave of trade wars.

Read the Full Politico Article at:
[ https://www.politico.com/newsletters/digital-future-daily/2025/02/05/trump-trade-war-tariffs-chips-friendshoring-00202713 ]

N@N

What Trump's trade war means for 'friendshoring'