The tariff war between the United States and China is causing the reorientation of global supply chains to accelerate much faster than initially expected, the Nikkei Asia reported, citing Ian Bremer, president of consulting firm Eurasia Group.
“This is effectively tearing apart much of the remaining trade between the United States and China, accelerating the restructuring of supply chains and forcing companies to adapt faster than expected“, he said. We are talking about transferring production capacity from China to Vietnam, Indonesia, Mexico and other alternative jurisdictions. The accelerated establishment of new supply routes could lead to higher costs and temporary disruption to logistics, Nikkei Asia explained.