Made in USA or China?
The US trade deficit in terms of goods only was $347 billion with China last year, according to the US Census Bureau. China’s trade surplus with the US was $222.98 billion in the first 10 months of 2017. There’s no stopping China in the smartphone and apparel war. The fact is that made in China is cheaper and faster than the made in USA. That’s partly because labor costs are higher in the US.
Potential shifts in US trade policy threaten to upend 25 years of investment in global supply chains, with China at the heart. But what would it take to move manufacturing back to the United States from China? Goldman Sachs Research analysts Mark Delaney and Lindsay Drucker Mann explore the costs and challenges through a look at two products with global appeal: smartphones and apparel.