Global supply chains undergoing “great reallocation”, expert says

Mexico is biggest winner from US trade shift, economist tells Atlanta Fed conference

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A “great reallocation” of global supply chains is underway, Laura Alfaro, Harvard Business School professor told the Federal Reserve Bank of Atlanta’s financial markets conference on May 20.

“We are not seeing deglobalisation yet,” Alfaro said, stressing her use of “yet”. She said the true extent of reallocation is yet to be seen and the effect on consumers will surely be costly. Firms hit by tariffs are more likely to substitute out Chinese suppliers, she found. 

“I don’t think the US has done a

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