Trend US-centred restructuring of supply and value chains accelerates amid slowing globalization

Summary

The report observes that the pace of globalization has been slowing under the combined effects of the pandemic, US-China strategic rivalry and moves to restructure global supply chains. It expects the new US tariffs, whatever the final rates, to bring about unavoidable change in supply and value chains already exposed to post-pandemic pressure. Knock-on effects are expected to reach each country's economic-security structure and industrial competitiveness and possibly the global balance of hegemony. Amid Chinese growth, the Ukraine war, intensifying US-China rivalry and tightening sanctions between Russia and the West, Washington has drafted policies to rebuild supply and value chains around itself. The authors note that this trend has gathered pace with the second Trump administration's America-first diplomacy and tariff drive.