According to the latest global survey released by Allianz Trade on May 20, in response to the new round of tariff policies by the Trump administration, about 90% of American companies have expressed plans to partially or fully relocate their production and procurement activities back to the United States. This indicates an acceleration of the trend of “reshoring” by American enterprises.
The report indicates that since President Trump announced the implementation of global tariffs on April 2, American companies have been one of the most proactive groups globally seeking local supply alternatives, alongside companies from Italy and Spain. This policy aims to reshape the global trade system, revitalize the American manufacturing industry, and correct long-standing unfair trade practices.
However, the report also points out that achieving reshoring of production capacity is not an easy task. Companies are facing challenges such as supplier transitions, rising costs, and labor shortages.
The survey shows that over three-quarters of the surveyed companies believe that the complexity, centralization, and competitive pressures of existing supply chains are the main sources of risk for overseas production. The high intention of reshoring reflects that under the Trump administration’s trade policies, companies tend to believe that streamlined domestic supply chains are more competitive.
At the same time, most American companies are prepared to pass on tariff costs through price increases. The survey indicates that 54% of companies plan to raise product prices after the tariffs took effect in April, higher than the previous 46%.
Aylin Somersan Coqui, CEO of Allianz Trade, stated, “Compared to the optimism before April, this survey reflects growing concerns about uncertainty and differentiation in the market. Especially for companies with overly centralized supply chains and export markets, risks are particularly evident.”
Since returning to the White House in January, the Trump administration has significantly raised import tariffs, imposing a 10% basic tax rate on most imported goods and up to 30% tariffs on specific countries such as China. The plan to impose a punitive 145% tariff on China has been temporarily postponed for 90 days.
Although the government expects the market to pass on tariff costs to foreign exporters, the survey shows that only 15% of American companies are willing to absorb the related costs themselves, lower than the global average of 22%.
Opinions within the industry on Trump’s tariff policies are divided. Supporters believe that this move can correct past unfair trade structures and protect domestic industries, while critics warn that it may trigger economic fluctuations and price increases. Some companies like Walmart have announced price hikes, while Home Depot has stated that prices will remain unchanged.
In addition to price increases, companies are adopting diverse strategies to cope with challenges, such as shifting procurement to countries with low tariffs, importing early, changing logistics routes, and transferring risks to suppliers and customers.
“Companies are not just waiting to be hit,” emphasized Coqui. “Experiencing multiple shocks since 2020, companies have once again shown their ability to adapt flexibly, seeking stable ground in the new trade environment through diversified suppliers, logistics restructuring, and risk-sharing strategies.”
On the other hand, U.S. tariff revenue has significantly increased. A report from the Treasury Department in April indicated that customs duties reached $16.3 billion that month, doubling from the same period last year, pushing the federal budget surplus to $258 billion for the month, up 23% annually.
However, economists point out that these fiscal revenues may decrease with a reduction in trade volume. The Tax Foundation estimates that maintaining a 10% comprehensive tariff could increase revenue by $2.2 trillion over ten years; however, after accounting for import contractions and economic impacts, the actual net increase is only around $1.7 trillion.
The foundation wrote in its report in April, “Tariffs pushing up the prices of imported goods may prompt consumers to switch to tax-exempt alternatives, resulting in a decline in total imports.”
Furthermore, the latest survey from the Epoch Times indicates that the majority of readers support Trump’s trade restructuring policy, believing that it will help protect American industries and strengthen economic autonomy.