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Investigation shows Trump tariffs won't lead to supply chain relocation to the United States

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Hello everyone, today XM Forex will bring you "[XM Forex]: Surveys show that Trump's tariffs will not cause the supply chain to return to the United States." Hope it will be helpful to you! The original content is as follows:

A new supply chain survey by xmaccount.comBC shows that if President Trump’s tariffs cause Asian powers to lose some manufacturing, then U.S. manufacturing will not be the main beneficiary.

Returning to the United States is difficult

The Trump administration said the return boom is xmaccount.coming, but most xmaccount.companies surveyed say bringing supply chains back to the United States may double their costs and will therefore begin seeking a low tariff system worldwide.

More than half of respondents (57%) said cost was the top reason they would not transfer production back to the United States; 21% said their top reason was the challenge of finding a skilled workforce. The Trump administration promised to cut taxes for xmaccount.companies moving manufacturing back to the U.S., but the survey found that taxes (14%) were lower in the rankings among factors that influence manufacturing location decisions.

While the tech industry has recently released some xmaccount.compelling news, including Nvidia's plan to build a supercomputer factory in the U.S. and Apple promises to invest $500 billion in the U.S., most xmaccount.companies believe the cost is too high. The Trump administration suspended new tariffs on the technology industry in China and other global manufacturing countries last Friday, but the White House is pushing for a national security investigation into key technologies for future tariffs.

In general, most respondents estimate that setting up a new domestic supply chain price tag is at least twice the current cost, or possibly more than twice the current cost. 61% said that it would be more cost-effective to move the supply chain to countries with lower tariffs than to move the supply chain back to the United States.

In addition to tariffs, consumer demand and raw material prices, and the “current governmentThe inability to provide a consistent strategy is considered a major issue in supply chains.

When asked whether they felt that the Trump administration was “bullying the American business xmaccount.community”, the majority of respondents (61%) responded to “yes.”

The survey was conducted from April 14 to 18, with a total of 380 respondents from supply chain businesses and business organizations participating, with 120 respondents in each question answered.

Of courses expressed interest in rebuilding the U.S. supply chain, 41 % said it would take at least three to five years, and 33% said it would take more than five years.

Automation will dominate

If manufacturing returns to the United States, automation will become an important part of the economic model, with 81% of respondents saying they will use automation more than manual.

Mark Baxa, CEO of supply chain trading group CSCMP, said: "When relocating back to the United States, the U.S. labor market is a worrying issue. ”

In the current environment, layoffs are an urgent issue, with respondents who say they plan to lay off work (47%) and respondents who say they don’t have a layoff plan at present (53%) each accounting for almost half. For a more xmaccount.common question, how long will xmaccount.companies wait for personnel decisions, most say they won’t be more than nine months (38% say they will be within two to three months; 23% over the next three to six months).

The Fed announced on Monday A survey shows concerns about layoffs surge.

Currently, 89% of respondents said the most xmaccount.common response to Trump’s tariffs is to cancel orders and expect consumers to cut spending (75% said they are predicting this). Regarding products entering the U.S. under the new tariff rate, 61% said they will raise prices.

Baxa said: "The direct impact is order cancellation, and the risk of consumer spending falling is worth paying attention. ”

Respondents expect that the products that are most affected by the shrinking consumer spending will be non-essential products (44%), furniture (19%) and luxury goods (19%). Paul Brashier, vice president of global supply chains at ITSLogistics, said: “As of now, we have seen a high rate of cancellation or suspension of freight from Asian powers, but increased freight and upfront loading from other Asian countries where peer tariffs are suspended for 90 days. ”

Supply Chain Recession Warning

63% of respondents warned that this year’s recession will impact the U.S. economy due to Trump’s tariff policy, with about half (51%) expecting consumer spending to fall in the second quarter.

Trump’s National Economic xmaccount.commission Director Kevin Hassett said on Monday that more than 10 countries have proposed “amazing” trade deals to the U.S., and he “100%” promises there will be no recession.

Several surveys on CEOs show that there is a widespread expectation that the recession may have begun or is about to xmaccount.come. BlackRock CEO OLarry Fink said that according to his conversations with CEOs in various economic sectors, the United States is now either very close to a recession or has fallen into a recession.

Small businesses and startups say tariffs will be disastrous and put U.S. jobs at risk.

The above content is all about "[XM Forex]: The survey shows that Trump's tariffs will not cause the supply chain to return to the United States". It was carefully xmaccount.compiled and edited by the editor of XM Forex. I hope it will be helpful to your transactions! Thanks for the support!

Due to the author's limited ability and time constraints, some content in the article still needs to be discussed and studied in depth. Therefore, in the future, the author will conduct extended research and discussion on the following issues:

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