90 Percent of US Companies Plan to Reshore Amid Tariffs, Allianz Survey Finds
Nine out of 10 U.S. companies say they expect to bring some or all of their production or sourcing back home in response to new tariffs imposed under President Donald Trump's trade policy, according to the latest Allianz Trade Global Survey.
The
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
16 minutes ago
- Yahoo
Trump's first term shows why markets are cautious on the China trade deal
The stock market was largely unmoved by the trade agreement the US struck with China. Market pros say investors expect the trade war to unfold much as it did during Trump's first term. The US and China made scant progress on key issues in their 2018-2019 trade dispute. The stock market has been encouraged by easing tensions between the US and China in recent weeks, but investors were largely unmoved by the announcement of a trade deal between the superpowers on Tuesday. US stock futures failed to climb on news of the deal late Tuesday evening. While markets are edging higher on Wednesday, that's largely because the consumer price index report for May showed inflation was tamer than expected at 2.4% year-over-year. Here's where major indexes stood at 10:20 a.m. ET: S&P 500: 6,055.26, up 0.28% Dow Jones Industrial Average: 42,997.65, up 0.31% (+130.78 points) Nasdaq Composite: 19,788.36, up 0.37% On the trade front, observers say it's looking more likely that the trade war will shake out like it did during President Donald Trump's first term, with talk of constructive deals even as tensions remain elevated. Simply put, investors see a long and winding path ahead, and knee-jerk reactions to trade announcements have largely subsided since the chaos of "Liberation Day" in April. The framework agreement announced on Tuesday outlines how the two nations will continue trade talks. Importantly, it involves China allowing exports of rare earth minerals, while the US eases up on restrictions for exports of advanced tech to China, like semiconductors. This embedded content is not available in your region. The reaction is far more muted than how the market reacted last month, when stocks popped after the US struck a rough framework deal with China that lowered tariffs between the nations for 90 days. Art Hogan, the chief market strategist at B. Riley Wealth, told Business Insider that markets are reacting to trade talks similarly to when the US-China trade war first kicked off in 2018. He pointed to regular pullbacks in stocks during Trump's first term as traders digested the lack of progress in US-China negotiations. "We still have that muscle memory from Trump 1.0, that dealing with China is difficult and there's a multitude of issues," Hogan said. "I don't think we're going to solve this in short order and likely never solve it in the longer term." He added that markets are likely waiting for a more positive catalyst, pointing to more than 100 nations that have yet to strike a trade deal with the US. Peter Berezin, the chief global strategist at BCA Research, said the framework made only small progress on negotiations with China. "I would say that the 'deal' in London simply restores things to how they were right after Geneva," he told BI in an email. He added that he expected tariffs on China to remain high "for the foreseeable future." Strategists at Deutsche Bank also said that tariff talks appear to mirror the 2018-2019 period, when the US and China didn't make much headway in resolving key issues. Back then, the US said that China had unfair trade practices related to industries like agriculture and manufacturing. It also said China had unfairly transferred technology and stolen intellectual property from the US. Deutsche Bank pointed out that the agreement announced Tuesday skipped over fentanyl-related tariffs that Trump implemented against China earlier this year. "So while the mood music has stayed positive, investors may be wary of the pattern that emerged during the previous US-China trade talks in 2018-19," strategists wrote. "So there's perhaps a little disappointment this morning that we haven't yet got a bigger announcement." The agreement also appeared to lack detail that markets were looking for, David Morrison, a senior market analyst at Trade Nation, wrote in a note. "The big question is what kind of trade deals can the US negotiate that will be good enough to get the indices to fresh records?" he said. US stocks have whipsawed this year amid the turmoil surrounding tariffs and incremental news of trade agreements between the US and other countries. Indexes have erased their steep losses since the April 2 tariff announcements, with major averages now positive year-to-date. Read the original article on Business Insider
New York Post
24 minutes ago
- New York Post
Three cheers for the US-China trade war ceasefire
Yay! High-level US-China talks in London this week reached a trade-war ceasefire, offering some stability for nervous markets. Days of talks, following on President Donald Trump's call with China's Xi Jinping last Thursday, settled on a framework that leaves a 55% US tariff on Chinese goods and a 10% Chinese levy on American imports. Plus, Beijing will ease restrictions on rare-earth exports while Washington will back off on its developing ban on Chinese students attending American universities. Plenty of issues remain: China's key role in world fentanyl production, for one thing; its long history of intellectual-property theft, currency manipulation and so on. Not to mention the outright espionage that so many of those students are dragged into. And of course in the longer term the United States needs to be less dependent on China for rare earths, pharmaceutical precursors and many other critical needs. The two sides are supposed to reach a comprehensive deal by Aug. 10, but at least the summer should be calm. The chaos of on-again, off-again tariffs had led to turbulence in US markets and had mom-and-pop shops bracing for 'the end'; now they can plan at least a couple of months ahead, with solid reason to hope the worst is over. US businesses can adapt to 55% tariffs on Chinese goods, as long as they've got some certainty that the rate will remain stable. Kudos to Treasury and Commerce Secretaries Scott Bessent and Howard Lutnick, the top US negotiators in London, for mastering 'the art of the framework'; let's hope Trump and Xi can close a final deal.
Bloomberg
43 minutes ago
- Bloomberg
CEA Chair Miran on Inflation, Tax Bill and China Tariffs
White House Council of Economic Advisers Chair Stephen Miran says inflation has been successfully coming down because of President Donald Trump's policies. Speaking on "Balance of Power," Miran also comments on Trump's tax bill and the state of China-US trade relations. (Source: Bloomberg)
