Chinese economy

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published: 4.08.2025

U.S. Tariff Flooding Will Reshuffle Supply Chains

Bruegel Senior Fellow Alicia Garcia-Herrero explains how the U.S.’ expanded tariffs under the second Trump administration are reshaping global supply chains by imposing steep, targeted duties and pressuring Asian economies to invest in American production. As manufacturing shifts away from China and its neighbours, countries like Mexico may benefit, while India risks being left behind.