Goldman Sachs has take a look at how difficult it would be for U.S. companies to find alternatives to Chinese sources of supply in a global trade/tariff war. And the picture isn’t very pretty.
Goldman writes:
“Notably, 36% of US imports from China (around $158 billion) fall into categories where the U.S. depends on China for over 70% of its supply–suggesting limited ability for American importers to find alternative suppliers even when facing substantial tariff increases.
“China’s reliance on U.S. imports above the 70% threshold totals just $14 billion, with over half of Chinese imports from the U.S. fall into categories where the U.S. supplies less than 30% of China’s total demand.”