A new CNBC Supply Chain Survey reveals that the U.S. is unlikely to be the primary beneficiary if China loses manufacturing business due to President Donald Trump’s tariffs. Despite the Trump administration’s assurances of a coming “reshoring boom,” most companies surveyed say the costs of bringing supply chains back to the United States would be prohibitive, with many indicating they will instead seek out countries with lower tariffs.
The survey, conducted from April 7 to 10 and distributed to members of major industry groups such as the U.S. Chamber of Commerce and the National Association of Manufacturers, included 380 respondents from supply chain and business organizations, with 120 answering every question.
The findings show widespread skepticism about the feasibility and desirability of reshoring. Over half of respondents (57%) cited cost as the main reason for not moving production back to the U.S., while 21% pointed to the difficulty of finding skilled labor.
Recommended For You
Tax incentives, a key part of the administration’s pitch, ranked lower, with only 14% identifying taxes as a major factor in their decision-making.
Recent high-profile announcements from technology giants, such as Nvidia’s plans for a U.S. supercomputer plant and Apple’s $500 billion investment commitment, have not shifted the broader industry consensus. Most companies still view the cost of domestic supply chains as prohibitive. Even as the administration temporarily exempted the tech sector from new tariffs, it continues to pursue a national security investigation that could result in future tariffs on critical technology.
The financial implications of reshoring are stark. Eighteen percent of respondents estimated that building a new domestic supply chain would at least double their current costs, while 47% said it would likely cost more than double. Instead, 61% said relocating supply chains to countries with lower tariffs would be more cost-effective.
Beyond tariffs, companies cited consumer demand and raw material prices.
The timeline is daunting for those considering reestablishing a U.S. supply chain. Forty-one percent said it would take at least three to five years, and 33% said it would take longer than five years.
Automation is expected to play a dominant role in any return of manufacturing, with 81% of respondents indicating they would rely more on automation than on human workers. “The U.S. labor market is a concern when considering movement back to the U.S.,” Mark Baxa, CEO of the Council of Supply Chain Management Professionals, told CNBC.
Layoffs are another immediate concern. Respondents were nearly evenly split on whether they are planning headcount reductions, with 47% saying yes and 53% saying no. Most companies said they would make staffing decisions within the next nine months, with 38% planning to act within two to three months and 23% within three to six months.
The most common response to the tariffs has been the cancellation of orders, reported by 89% of respondents. Seventy-five percent expect consumers to cut back on spending, and 61% said they would raise prices on products affected by the new tariffs. “The immediate impact is order cancellations and the risk of consumer spending pullback is noteworthy,” Baxa said.
The survey results suggest that, for now, the Trump administration’s tariffs are prompting companies to rethink their global supply chains, but not in ways that are likely to bring manufacturing jobs back to the United States. Instead, the search for lower costs is driving business decisions.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
