Study Reveals Costly Trade Shift from China Due to Trump and Biden Policies

Research presented at the Federal Reserve economic symposium shows that U.S. trade has shifted away from China due to policies enacted by the Biden and Trump administrations. However, the reliance on China-linked supply chains has not necessarily been reduced, and consumers have faced higher costs. The decline in China's U.S. import share may not represent a true delinking, as China has increased its trade and investment activity with other countries. Concerns are being raised about the risks of sprawling supply chains, and recent policy restrictions may add to wage and cost pressures in the U.S.