The China-Global South 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 Juliana Bouchot, a senior analyst focused on supply chain policy, dive into the complexities of China’s role in global supply chains. They discuss escalating U.S.-China trade tensions and the potential impacts of new tariffs on inflation and consumers. The conversation reveals the challenges major companies, like Apple, face in reshoring their manufacturing. They also explore the prospects for emerging markets absorbing China’s manufacturing output amidst these shifts.
40:31
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Quick takeaways
- The U.S. proposal of a 50% tariff on Chinese goods could lead to unprecedented trade disruptions, exceeding a staggering total of 104% on imports.
- China's enduring dominance in global manufacturing complicates supply chain diversification efforts, as high relocation costs and established efficiency pose significant challenges.
Deep dives
Escalation of Tariff Wars
The threat of increased tariffs between the U.S. and China has reached unprecedented levels, with Trump proposing a 50% tariff on Chinese goods. This tariff could stack atop existing tariffs, leading U.S. companies to potentially face a staggering total of 104% on imports from China. Such extreme measures could drastically impact trade, with U.S.-China trade volumes recently exceeding $525 billion. In response, China has firmly rejected U.S. tariffs, asserting its commitment to fight back and highlighting the damaging effects of such unilateral actions on global trade.
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