ICIS - chemical podcasts Episode 1297: Think Tank: Trump 2.0 trade war will destabilise chemical value chains, boost reshoring
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Feb 4, 2025 
Paul Hodges, Chairman of New Normal Consulting, dives into the implications of the revived trade war under Donald Trump on the chemical industry. He discusses the urgent need for businesses to seek stability through local supply chains amid chaos. The conversation explores the costly and complex nature of reshoring, while highlighting how emerging technologies like 3D printing and AI can facilitate local production. Hodges emphasizes the risks for export-dependent US chemicals and the balance needed in global trading relationships.
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Trade War Uncertainty Impacts EU Chemical Industry
- The EU chemical industry faces uncertainty from potential US tariffs and EU responses.
- This uncertainty complicates an already challenging situation of high costs and low profitability.
Reshoring Challenges for European Chemical Industry
- Reshoring or regionalization might offer long-term solutions for supply chain stability.
- However, Europe's current high-cost position necessitates reliance on imports, potentially increasing costs further.
Globalization's End and the Rise of Local Production
- The current trade war signals the end of globalization and a shift towards local production.
- New technologies like 3D printing and AI empower this shift, allowing businesses to adapt.