Despite the Trump administration’s push for reshoring, a CNBC Supply Chain Survey reveals that most companies aren’t planning to move manufacturing back to the U.S. due to high costs. Instead, they’re seeking lower-tariff regions abroad.
Among the 380 surveyed businesses, 57% cited cost as the top deterrent for reshoring, while 21% pointed to the lack of skilled labor. Tax incentives, though promoted by the administration, ranked lower (14%) among factors influencing site decisions.
While tech giants like Nvidia and Apple have announced U.S. investments, most firms view the cost of reshoring as prohibitive. Nearly half of respondents estimate that rebuilding domestic supply chains would more than double current costs. In contrast, 61% said relocating to other low-tariff countries would be more economical.
Other major concerns include inconsistent U.S. trade policy, raw material prices, and consumer demand. Over 60% of respondents feel the administration is “bullying corporate America.”
For those considering reshoring, 41% estimate the transition would take 3–5 years, while 33% believe it would take longer. Automation is expected to play a central role, with 81% of respondents saying it would be used more than human labor.
Layoffs are a growing concern—47% of companies are planning workforce reductions, while 53% are not. Most firms expect to make staffing decisions within the next nine months.
The most immediate response to tariffs has been order cancellations (89%) and expectations of reduced consumer spending (75%). About 61% of respondents plan to raise prices on tariffed products.
Discretionary goods (44%), furniture (19%), and luxury items (19%) are seen as the most vulnerable to consumer pullback. Some companies are shifting freight from China to other parts of Asia where tariffs have been temporarily paused.
A significant 63% of respondents foresee a recession this year as a result of the tariff policy, with over half expecting consumer spending to decline in Q2. Industry leaders warn that damage to supply chains may become irreversible.