New Study Reveals Majority of U.S. Businesses Anticipate Price Hikes Amid Tariff Pressures

Over half of U.S. businesses are gearing up to hike prices, thanks to tariffs imposed during the Trump era. Globally, around 60% of firms anticipate facing adverse effects from American trade strategies.

A recent survey by Allianz, which included responses from 4,500 companies across China, Europe, the U.K.,and the U.S., revealed that 42% expect their export revenues to dip by as much as 10% in the coming year. Surprisingly, fewer than half foresee any positive growth in exports during this timeframe; about a third plan to halt imports from overseas production to dodge delays and rising costs.

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The temporary pause on reciprocal tariffs between the U.S. and China offered a brief sigh of relief for many businesses. However, those surveyed by Allianz worry that this break might not last long. Nearly half of exporters predict an uptick in non-payment risks over the next six months or so—manufacturers are especially feeling this pinch as they ofen wait longer for payments compared to other sectors.

“For firms deeply embedded in global supply chains, concerns about geopolitical issues and trade conflicts are front and center,” notes the report. A meaningful 54% cite political instability and social unrest as major threats impacting their supply chains.

this has prompted many companies to rethink their supply chain strategies entirely; around 34% have already scouted new locations for offshore production while another 59% plan on doing so soon. The urgency is especially palpable among American firms—60% have pinpointed potential relocation sites.

To cope with financial strains stemming from Trump’s tariffs, only about 22% intend to absorb these costs themselves; most prefer passing them onto consumers—a common strategy—and also shifting some burden onto suppliers regarding customs duties. Consequently,nearly 60% are opting for pricing clauses in new contracts aimed at sharing foreign exchange risks with both clients and suppliers.