Trump’s trade war told through the story of a leather belt

© Janfaukner | Dreamstime.com

Here’s a fascinating in-depth look from Bloomberg at how one supply chain is set to be affected by the accelerating tit-for-tat tariff war between the US and China. The manufacturing of leather belts is no one-way street: leather hides are a by-product of the US’s enormous beef industry, and China buys around half of all US production; where it is processed and some of which it then makes into belts and sells back US consumers. Every step of this supply chain is set to be disrupted by the tariffs – new Chinese duties on US leather exports make it more expensive for Chinese manufacturers, who are now looking for other sources, while US tariffs on Chinese manufactured imports will result in higher costs to consumers, or ultimately ‘end with Chinese factories closing. “For U.S. shoppers, it’s beginning to sink in that they may end up bearing the brunt of the trade spat for hundreds of products.”