Are Trump Tariffs Working? Companies Bring Production Home but Here’s Why
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Very interesting are the tariffs causing companies or forcing companies to re-sure. Listen, interesting survey I was taking a look at. as far as this numbers, and I’m sure the administration is going to seize upon this, 9 out of 10 companies said they expect to bring some or all.
of their production or sourcing back home in response to the tariffs that Donald Trump imposed. Interesting. Now, this survey came out on May 20th. It looks like more hints that there’s going to be an acceleration in reshoring efforts as various different companies look to adapt to the tariffs. They found 90 % of companies plan to reshore or switch domestic suppliers.
They ranked, we really think that the United States companies ranked number one as far as companies likely to reshore. Second was Italy and third was Spain. However, okay, fine print. You gotta look at the fine print on this one, because that’s something that you always have to look at, fine print. When asked about the top hurdles standing in the way of reshoring supplier related issues,
and no longer higher costs were the top choice compared to last year. Labor related issues round up the top three hurdles. See, I told you so. Yeah, we have very, very low, low unemployment in this country. Very low unemployment in this country. We just watched a major debate take place with the big, beautiful bill where you had Republicans
Well, quasi Republicans, well, I guess he’s a Democrat now, Josh Hawley, basically say, no, you can’t touch Medicaid. You had the president of the United States say, don’t blanking, touch Medicaid. If you know how to game the system in this country, you don’t have to work. You don’t really have to work. Get seven million.
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able-bodied, not on disability, able-bodied men, working age, prime of their lives, that are not only, they’re not employed, they didn’t file for unemployment, they’re just just saying, I’m out. I’m not in the labor force. Again, we’ve created a welfare state that has allowed for this to take place and don’t even get me started on disability, okay?
The things that you can get yourself put on disability, it’s quite frankly, it’s ridiculous. We’ve gone off on it before and we all know. We all know people that, my God, my back is killing me all of a sudden. Anyway, more than three quarters of the companies pointed to supply chain structure, their complexity, concentration, or competition as a key threat to offshore.
production with the high share of dedicated declared reshoring intention suggesting that firms see clear benefits to simpler domestic supply chains. Yeah, you know, that’s the case. But, okay, even though the reshoring, okay, you’re like, Chris, see, look, they’re working. Well, well, your prices are going up. The majority, overwhelming majority of US firms say they plan to raise prices to offset the effects of tariffs.
54 % of US companies said they would increase prices following the April tariff hike up from 46 % beforehand. And again,
Little birdie told me that there’s been a lot of wink wink nod nodding on this survey saying, I’m not gonna say open up my mouth. I’m not gonna tell you what I’m going to do because there’s a lot of fear involved. There’s a lot of fear involved. You don’t wanna draw the ire and the truth social posts of the president of the United States. So, okay, that’s where we’re at right now. We shall see. But the reality of
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the situation, like I said before, your prices are going.
and they’re gonna go up significantly. Now granted, know, maybe we can get energy prices down and that can help a little bit, but it’s not gonna be able to help enough. You know, live in certain areas of this country, frankly, again, California, know, $20 plus minimum wage to put burgers.
How is it going to fly here? And again, if companies are going to do this, start buying a lot of real estate in states like Florida and Texas and many others that are low as far as state taxes are concerned and regulation, because that’s where everybody’s going to set up shop. Not like these businesses are going to be moving back to upstate New York by any stretch of the imagination, or these high tax areas in the Northeast, not going to happen.
that would drive their prices up even further. So again, if this is going to be the case, make sure you lower your taxes in your state, get on the phone and try to get them to move their businesses there. But once again, you better have the workers. Watchdog on wallstreet.com.
