I have recently read research conducted in the late 90s illustrating how US MNCs adjusted strategies to best take advantage of comparative advantage as several free trade agreements of the era were being negotiated. Now that the pendulum is swinging in the opposite direction, I am curious about research specifically illustrating US MNC behavior regarding strategic re-alignment to navigate the current era of protectionism.
Steven Severt
American MNCs responded to Trump-era tariffs with a mix of tactical and strategic adjustments. Many firms diversified their supply chains by relocating production from China to Southeast Asian countries or reshoring some operations to the U.S. to avoid tariffs. Others engaged in tariff engineering by modifying products to fall under lower-duty categories.
Additionally, companies renegotiated supplier contracts, revised pricing strategies to share or pass on costs, and invested in legal and compliance expertise to navigate regulatory complexities. Broadly, this period led MNCs to reassess global value chains, shifting focus from pure cost-efficiency to building more resilient and flexible supply networks amid rising geopolitical uncertainties.
- Badges
- Science topic
- Similar topics
- Social Psychology
- Attitude