Over 50% of US firms plan to raise prices amid Trump trade war risks: survey
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.
The research was conducted both before and after 'Liberation Day' on April 2, when Trump announced duties on nearly all US trade partners. The survey follows comments by Walmart CEO Doug McMillon on May 15, when he warned the retail giant was unable to absorb all the costs of the trade war. On Saturday, Trump posted on social media that Walmart and China should
'eat the tariffs'.
The
temporary trade truce between the US and China will end on August 12, unless the agreement reached in Geneva is extended. US tariffs on Chinese imports have fallen from as high as 145 per cent to 30 per cent, while Beijing's duties on American imports have dropped from 125 per cent to 10 per cent. The deadline for most countries to reach a deal with Washington has been set for July 8.
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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South China Morning Post
2 hours ago
- South China Morning Post
As Hong Kong's financial sector soars, what about food and retail?
Hong Kong is at risk of splitting up into two economies. On one end, Hong Kong's financial, professional and business services are being revived on the back of China's resurgent, tech-driven economy and the shifting balance of power between Washington and Beijing. Credit rating downgrades , poor responses to auctions of US Treasuries and slower growth as predicted by the World Bank – lowered to 1.4 per cent in June from 2.3 per cent in January – have sent the mighty US dollar on a downtrend and a flight of capital to Asia for better returns. Hong Kong's stock market is positioned in the right place at the right time. As tariff chaos and policy flip-flops erode the US' credibility and moral standing, China has emerged as an oasis of certainty in an increasingly volatile and dangerous world. The mainland's use of Hong Kong as a platform for its new tech champions to raise funds and connect with global markets has fuelled the city's return to its role as one of the world's top fundraising venues. More than 100 enterprises – including leading companies from the mainland – are said to be in line for public listing on Hong Kong's stock exchange. The Hang Seng Index is up 15 per cent in the first quarter of this year, building on a surge of over 17 per cent in 2024. State policies aimed at maximising the use of Hong Kong's internationally connected financial and capital markets have helped, but local officials have not sat on their hands either. Taking advantage of the city's reformed legislative system, the government has taken action to bolster Hong Kong's position as a global financial hub.
South China Morning Post
2 hours ago
- South China Morning Post
China's property slump drives Hong Kong investors to Japan, aided by yen weakness
Global investors, including those based in Hong Kong, are channelling their funds into Japan's residential property market as returns from assets in mainland China sag in the midst of a four-year slump, according to market consultants. They ploughed in US$11.2 billion of capital into Japanese real estate in the first quarter, or 6 per cent above the five-year average, according to data compiled by Colliers, making it the fifth largest recipient globally. Investors from the US, Singapore and Hong Kong were the top three contributors to the inflows, it said. Even investors from mainland China are looking east: they poured US$1 billion into Japanese real estate in the same period, more than double the five-year average of US$428 million. In the residential sector, local and foreign funds spent US$1.2 billion in the first quarter, a 16 per cent increase from a year earlier, according to JLL. 'Hong Kong investors have traditionally focused on China, but the collapse of the Chinese real estate market has redirected capital flows towards more stable markets such as Japan and Australia,' said Masahiro Tanikawa, head of investment services at Colliers Japan. Both countries 'offer a deep and liquid multifamily investment market – one of the largest in the Asia-Pacific region', he added. Investors are turning away from mainland China, where a debt crunch has persisted since 2020 and new home prices have slumped for 24 consecutive months. The pivot coincided with the slide in the Japanese currency, which bolsters the appeal of local assets to foreign funds. 02:28 Japan to release emergency rice stocks as prices soar Japan to release emergency rice stocks as prices soar The yen has weakened about 1 per cent against the US dollar over the past month, taking its cumulative depreciation to 9 per cent over the past 12 months. Inflation was 4 per cent in January, a two-year high, before easing to 3.5 per cent last month.
South China Morning Post
3 hours ago
- South China Morning Post
Hong Kong must build on progress made as it enters latest chapter
The fifth anniversary of Hong Kong's national security law was marked yesterday with a high-level forum that reflected on the past but looked to the future. Xia Baolong, Beijing's top official overseeing the city's affairs, recognised the progress Hong Kong has made since 2020, noting it had entered a new stage of development. But he warned this is a critical period for the city, which needs to adapt, seize opportunities and rise to new challenges. Xia's five-day visit has included meetings with officials, politicians, business leaders, universities and foreign chambers of commerce. It is an important trip. When the national security law was passed by China's legislature, Hong Kong was a different place, facing unprecedented difficulties. Months-long anti-government protests in 2019 rocked the city. This was followed by the Covid-19 pandemic, which also battered the economy and restricted international engagement. Xia described the legislation as a good law that targeted a small minority, had restored order and provided the foundation for the city's recovery and renewal. Hong Kong has bounced back, attracting business, investment, tourists and talent, staging international conferences and a wide variety of 'mega-events'.
