“A smaller planet”: Friendshoring’s poorer and less secure world

Limiting trade to trusted partners is the instinctive response for many to global uncertainty. But without taking into account whether some 'trusted allies' can be trusted or are even allies, friendshoring would wreck supply chains, limit imports, and raise prices. All policymakers need to do instead is to make sure businesses have the widest possible range of replacement markets — and not just ‘trusted’ ones.