More than half of surveyed companies from the United States plan to raise prices on their products and pass on costs in response to US President Donald Trump’s tariffs, a new global survey by Allianz Trade has found.
Advertisement
Fifty-four per cent of American firms said they would increase prices, according to the research released on Tuesday. A total of 4,500 exporters were surveyed across China, France, Germany, Italy, Poland, Singapore, Spain, the UK and the US – countries that collectively account for nearly 60 per cent of global GDP.
“Few companies intend to absorb increased costs or cut export prices to maintain market share,” the international insurance company said. “Because of high uncertainty, sourcing from new markets is likely to continue… to mitigate the impact of tariffs.”
Up to 45 per cent of firms in China also “intend to raise their prices to cope with higher tariffs”, according to Allianz Trade.
The research was conducted both before and after “Liberation Day” on April 2, when Trump announced duties on nearly all US trade partners. The survey follows comments by Walmart CEO Doug McMillon on May 15, when he warned the retail giant was unable to absorb all the costs of the trade war. On Saturday, Trump posted on social media that Walmart and China should “eat the tariffs”.
Advertisement
The temporary trade truce between the US and China will end on August 12, unless the agreement reached in Geneva is extended. US tariffs on Chinese imports have fallen from as high as 145 per cent to 30 per cent, while Beijing’s duties on American imports have dropped from 125 per cent to 10 per cent. The deadline for most countries to reach a deal with Washington has been set for July 8.
More than half of the surveyed respondents said they consider geopolitical risks as a top business threat. Diversifying supply chains and customer bases has become a mitigation strategy, with a majority of firms seeking alternative shipping routes to keep customs fees under control, the international insurance company said.