Over 50% of US firms plan to raise prices amid Trump trade war risks: survey
American companies are unwilling to absorb the costs of tariffs despite pressure from Washington, according to new research
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.
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.
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.