[15] These pledges mark a significant shift in the ability of US industry to manufacture semiconductors after two decades of dependence on offshore production. [16]  Implications for the EU economy and the ECB’s monetary policy This new state of affairs poses challenges for the EU economy and the ECB’s monetary policy.
Weaker trade integration could significantly reduce welfare because our economy is one of the most open and outward-oriented large economies. Its interdependencies could therefore turn into vulnerabilities (Chart 4). Chart 4 Summary heatmap of EU trade dependencies  Sources: CEPII-BACI database, Bailey et al. (2017) and own calculations. Notes: The heatmap uses indicators of concentration, scarcity and substitutability (subst.)