U.S. companies have been engaged in an agenda of supply chain diversification for years.
Stemming from a desire to reduce reliance on China, “Don’t put all your eggs in one basket” has been the prevailing mantra since the pandemic, when supply chain slowdowns upended go-to-market strategies and put inventory levels in a state of constant flux.
The objective has become even more pointed as the trade relationship between the two countries continues to sour. In fact, nearly 80 percent of American brands now say they’ll make cuts to their China sourcing over the next two years, and the same number will broaden their sourcing portfolios during the same time frame.
But the American public may take a different view of the many baskets approach.
According to insights from the Pew Research Center, most Americans are ambivalent if not pessimistic about the prospect of increased trade with other countries.
Data from thousands of American adults gathered in April and early July showed that when weighing the costs and benefits of upping trade with other nations, 59 percent believe the U.S. “has lost more than it has gained.”
The issue is skewed across party lines, with Republicans’ views on global trade having become more negative over the past three years. Nearly three-quarters (73 percent) of conservatives and those who lean right said the U.S. has ceded ground to others in its pursuit of more trade relationships, up 8 percent from 2021.
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Meanwhile, Democrats remain divided, with about half saying the U.S. has gained more than it has lost and 47 percent saying the opposite—a similar position to 2021.
Other factors besides party alignment that contribute to people’s views on trade, including educational background, Pew found.
“Americans with at least a four-year bachelor’s degree are more likely than those with less formal education to say increased trade with other countries has more benefits than costs for the U.S.,” analysts wrote.
The trend holds true across both parties, with 47 percent of college graduates saying the U.S. has gained more from increased international trade than it has given up, compared to 31 percent of respondents with less education who said the same.
Race, ethnicity and income, too, influence Americans’ views on trade. Among Democrats, 60 percent of Asian and 53 percent of white respondents said the U.S. has gained, rather than lost, from its trade relationships. Latino and black respondents were less bullish at 45 percent and 42 percent, respectively.
Higher-income Dems are also more positive about the impact of increased trade (62 percent), compared with middle-income (52 percent) and lower-income (42 percent) left-leaning voters.
White Republicans are “particularly critical of the growth in international trade,” Pew found, with just 22 percent espousing a positive view on the matter. About one-third of Black and Latino Republicans said the same, along with 49 percent of Asian party members.
There were only marginal differences in opinion when the issue was broken down by income, with higher-income Republicans slightly more likely to view increased trade through a positive lens. And younger right-leaning respondents were more likely to say the U.S. has gained ground in its pursuit of global trade.
Despite these differences in opinion, trade is, across the board, “a low-priority issue for most Americans,” despite it’s being a central theme in the 2024 election.
It’s simply not a pressing concern for most, according to Pew, coming in last on the list of 20 policy goals the group asked respondents to rank.
Notably, though, another recent survey by Pew found “considerable public skepticism” about the U.S. benefits of trade with China. Almost half (47 percent) said China benefits more from the relationship.
Meanwhile, while a broad swathe of the American electorate is less than gung-ho on global trade, they’re generally supportive of trade agreements.
The group’s July survey showed that 65 percent of the U.S. electorate believes that “in general,” free trade agreements (FTAs) between America and other countries are a good thing. Naturally, there are partisan differences; 79 percent of Democrats said they feel positive about FTAs, while just 53 percent of Republicans said the same.
While trade isn’t what keeps most Americans awake at night, Pew said few issues do outside of one: the economy. Almost three-quarters of Americans surveyed ranked strengthening the economy the top policy priority for 2024.