US Manufacturing Unlikely To Benefit From Tariffs, Survey Indicates: Respondents Feel Trump Team Is 'Bullying Corporate America' - Nike (NYSE:NKE)

A survey has indicated that the tariffs imposed by President Donald Trump‘s administration may not lead to a resurgence in U.S. manufacturing.

What Happened: A new supply chain survey suggested that the U.S. manufacturing sector is unlikely to be the primary beneficiary of China losing some manufacturing due to the imposed tariffs. The survey revealed that most companies believe that reshoring supply chains could potentially double their costs, leading them to seek low-tariff regimes globally, reported CNBC.

Despite promises of tax cuts for companies that bring back manufacturing to the U.S., 57% of respondents cited cost as the main reason for not reshoring production. Furthermore, 61% of the respondents felt that the Trump administration is “bullying corporate America.”

Bruce Kaminstein, a New York-based entrepreneur, told CNBC, "Small consumer companies that started with an innovative idea do not have the capital to invest in building factories.”

At the same time, Steve Lamar, CEO of the American Apparel & Footwear Association, explained that Trump’s ‘ill-advised’ tariff policy could adversely impact the supply chains that support millions of U.S. jobs, empower American manufacturers and offer affordable choices to consumers.

Why It Matters: According to a White House statement, Trump believes tariffs will safeguard current jobs and rejuvenate the manufacturing sector, reversing "the decades of globalization that has decimated our industrial base."

However, this survey’s findings indicate otherwise. It aligns with recent industry predictions. Economist Peter Schiff had warned that companies like Nike Inc. NKE would not shift production to the U.S. despite the tariffs, as it would increase costs.

Similarly, a leading tech analyst predicted that the tariffs could cause a significant price hike for Apple Inc. AAPL iPhones if manufacturing shifts to the U.S. The U.S. auto industry also faces potential disruption from a 25% tariff on imported vehicles, which could affect over 7 million vehicles.

On the other hand, Gordon Hanson, a professor at the Harvard Kennedy School told the Wall Street Journal that industries with less complex products—such as pharmaceutical or chemical manufacturing—are more likely to shift some operations back to the U.S.

These developments suggest that the tariffs may not have the intended effect of boosting U.S. manufacturing, but could instead lead to increased costs and potential disruptions across various industries.