From efficiency to resilience
The post-Cold War globalization model—maximize scale, minimize cost—is being replaced by “ally-shoring,” privileging friendly and democratic partners. The Indo-Pacific Economic Framework (IPEF) and U.S.-EU Trade and Technology Council mark this pivot.
Table 1. U.S. Goods Imports by Source Region (%)
| Region | 2019 | 2023 | 2025 |
|---|---|---|---|
| Asia ex-China | 22 | 27 | 29 |
| China | 21 | 17 | 13 |
| North America | 27 | 30 | 31 |
| EU | 18 | 18 | 18 |
Sources: BEA; IMF Direction of Trade.
Table 2. Reshoring Announcements by Sector (2022-25)
| Sector | Share of Projects | Avg. Investment ($ B) |
|---|---|---|
| Semiconductors | 34 | 4.2 |
| EV & Battery | 27 | 3.6 |
| Pharma & Health | 12 | 1.5 |
| Other Manufacturing | 27 | 1.1 |
Source: Reshoring Initiative Database 2025.
Economic impact
Ally-shoring stabilizes supply chains but can lift consumer prices ~1 percent. Yet it strengthens industrial employment and geopolitical cohesion.
Leadership implication
Global manufacturers should re-map supply networks to IPEF, USMCA, and EU partners. Long-term ROI will come from risk mitigation, not marginal cost savings.