🚨🚨New paper on "Bank financing of global supply chains," with @lalfaro, Mariya Brussevich, and @CMinoiu. Looking forward to presenting it @ASSAMeeting and at the @sffed next week. We study how (specialized) banks helped the great reallocation following the 2018-2019 trade tensions. We make 3 main points: 1. In reallocating their sourcing from Chinese suppliers to other Asian countries, U.S. importers face large search costs ($1.9 million, 5% of annual revenue). 2. In response to the tariff-induced input cost shock, tariff-hit importers increased their demand for bank credit 3. Tariff-hit firms with specialized banks (those offering specialized trade finance services to Asian markets) were 15 pps more likely and 3 months faster to establish new supplier relationships than firms with other banks.