Survey of firms shows efforts to revive U.S. manufacturing through tariffs may backfire

Trump tariffs unlikely to bring manufacturing back to U.S., CNBC survey shows.

Efforts to revive U.S. manufacturing through tariffs may backfire, with most companies saying the high cost of reshoring would keep production overseas, according to a new CNBC Supply Chain survey.

Nearly half of the firms surveyed said bringing manufacturing back to the U.S. would double their costs. As a result, instead of reshoring, companies are more likely to seek out new low-tariff regions to base operations, potentially shifting global supply chains rather than reversing them.

Among companies that would consider moving production to the U.S., 81% said they would rely primarily on automation rather than hiring local workers—undermining hopes of a large-scale industrial jobs revival.

The broader economic outlook painted by the survey is cautious. A majority of respondents (61%) expect consumer prices to rise and demand to soften in the near term. Meanwhile, 63% said a recession is now their base case scenario as tariff uncertainty weighs on confidence.

The findings highlight the growing disconnect between political pressure to reshore manufacturing and the financial realities businesses face in a globalised economy.

Link here to the CNBC piece for more.

This article was written by Eamonn Sheridan at www.forexlive.com.