Supply-Chain Chokepoints Turn Cheap Inputs Into Geopolitical Leverage
In a Hoover Institution discussion with Steven Davis, trade policy experts Chad Bown and Soumaya Keynes argue that the real danger in cross-border supply chains is not import dependence in general, but concentrated control over inputs that firms cannot quickly replace. Bown points to China’s 2025 restrictions on rare earths, permanent magnets and Nexperia chips as cases where upstream chokepoints threatened auto production more effectively than reciprocal tariffs. Keynes cautions that governments need sharper vulnerability mapping, but that information alone will not make private firms pay the cost of resilience when cheaper, efficient supply chains remain available.
Hoover Institution·May 20, 2026·18 min read
