A report from the Economist INtelligence Unit

North American supply chains: will reshoring actually happen?

The impact of the coronavirus pandemic has led to growing conversations in the US around the rerouting of supply chains from Asia to North America. These discussions had already started pre-pandemic as the US-China trade war simmered, and discussions were further fuelled by the revamped North American-Free Trade Agreement (NAFTA) that took effect in mid-2020 and the inauguration of Joe Biden as US president in January 2021.In this report, The Economist Intelligence Unit assesses the likelihood of a wholesale rerouting of US supply chains to North America. Even as the US, Mexico and Canada deepen their economic integration, we expect that businesses and investors will continue to favour the convenience, reliability and cost-effectiveness of Asia.