International Trade: Substack Article

Why is the offshoring of apparel employment not mourned by serious people?

Clothing production is low-tech and often involved low wages and harsh conditions for workers.

What countries have become primary locations for apparel production?

China and Bangladesh.

What is the Trump administration's stance on tariffs related to U.S. production?

They believe tariffs will bring back U.S. production of low-tech goods like t-shirts and sneakers.

What is the view of Trump's economic team regarding international trade?

They see imports as a loss for America and a win for foreigners.

What high tariffs did Trump impose that affected Canada?

High tariffs on Canadian aluminum.

What is the argument for limited industrial policy in the U.S.?

To promote industries of the future, especially those involving advanced technology.

What are the two reasons for the resurgence of industrial policy?

Positive spillovers between technology firms and geopolitical concerns regarding production reliance.

What is the CHIPS and Science Act of 2022?

Legislation designed to encourage semiconductor production and expand its ecosystem in the U.S.

What distinguishes the CHIPS Act from the Inflation Reduction Act?

The CHIPS Act had bipartisan support focused on retaining America's technology edge.

What effect has Trump's opposition to the CHIPS Act had on technology development?

It has created uncertainty and a chilling effect on U.S. technology development.

What is the potential consequence of Trump's administration's policies on industries?

They may favor low-wage, low-technology industries while undermining future technology industries.

What is a key concern regarding the concentration of semiconductor production?

It poses risks due to reliance on industrial clusters that could be threatened by geopolitical adversaries.

What does the term 'industrial ecosystem' refer to in the context of Silicon Valley?

A network of shared services, skilled workers, and knowledge exchange that enhances competitiveness.

How did the apparel industry in the U.S. change over time?

It moved from a significant domestic industry to being largely offshored to countries with lower labor costs.

What is the general sentiment towards the return of the apparel industry in the U.S.?

There is little desire to bring back the low-wage apparel industry.