The China in Africa Podcast
The Fate of China's Global Supply Chains in the New Tariff Era
Apr 9, 2025
Agatha Kratz, a Partner at Rhodium Group specializing in corporate advisory and Chinese trade policy, and Juliana Bouchot, a Senior Analyst with expertise in Chinese supply chains, dive deep into the complexities of global supply chains amidst rising U.S.-China tensions. They discuss the impact of tariffs on inflation and consumer behavior while exploring whether countries like Vietnam and India can effectively absorb China's manufacturing output. The conversation reveals how traditional supply chains are evolving and the potential shifts in the international trade landscape.
40:31
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Quick takeaways
- The escalating U.S.-China trade war threatens to impose crippling tariffs on Chinese imports, potentially destabilizing the global supply chain landscape.
- China maintains a dominant role in global production despite shifts toward alternative manufacturing hubs like Vietnam and Bangladesh, complicating supply chain diversification.
Deep dives
The Escalation of the Trade War
Recent developments signal a significant escalation in the U.S.-China trade war, with President Trump threatening an additional 50% tariff on Chinese imports if China does not retract its existing counter tariffs. This could lead to U.S. firms facing a staggering total effective tariff of 104% on imports from China, potentially crippling bilateral trade, which exceeded $525 billion last year. Meanwhile, China's government has expressed its determination to resist U.S. pressures, deeming these tariffs as economic bullying and highlighting that such trade conflicts will have no winners. This rhetoric raises concerns among investors about market stability and future trade relations.
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