By Rajesh Kumar Singh and Philip Blenkinsop
CHICAGO/BRUSSELS (Reuters) – New York-based Delta Children, which makes cribs in China for retailers such as Walmart, briefly studied moving production to the United States as supply shortages caused by the COVID-19 pandemic added to its hefty bill from U.S. import tariffs.
Commerce Secretary Wilbur Ross predicted in January the pandemic would “help accelerate” this type of re-shoring of jobs to the United States, while some policymakers even spoke of a wider retreat of globalisation as companies retrenched to deal with severed supply chains.
But Delta chief executive Joe Shamie finally ruled out the move due to higher labour costs and a lack of suppliers. The company still plans to diversify its supply chain – but by moving some production to South East Asia.
“The Made-in-USA tag will work if the products are of the same quality and competitively priced, which is not