Nationalizing Supply Chains Is the Wrong Response to COVID-19

A worker folds medical gowns at Echota Fabrics, Inc., in Calhoun, Georgia, April 8, 2020 (photo by Alyssa Pointer for Atlanta Journal-Constitution via AP).
A worker folds medical gowns at Echota Fabrics, Inc., in Calhoun, Georgia, April 8, 2020 (photo by Alyssa Pointer for Atlanta Journal-Constitution via AP).

President Donald Trump’s aggressive unilateralism on trade appears to be driven by his belief that making imported goods more expensive will lead multinational companies—foreign and domestic, but especially American—to relocate production facilities to the United States. There is nascent evidence that Trump’s trade war with China has caused some reshuffling of supply chains, but mainly to other parts of Asia, not to America. Now, though, some trade hawks in the administration appear to view the coronavirus pandemic as an opportunity to encourage firms to move their supply chains to the U.S., no matter the cost. The Trump administration is not […]

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