U.S. Firms Reject Reshoring, Eye Lower-Tariff Countries Instead, According To New Survey

A new CNBC Supply Chain Survey indicates that the United States is unlikely to gain manufacturing jobs if companies pull out of China due to tariffs introduced under President Donald Trump.

Despite promises of a “reshoring boom,” the survey reveals that high costs are steering companies toward alternative low-tariff countries, not back to the U.S.

The survey, conducted April 7–10, included 380 business and supply chain professionals from groups like the U.S. Chamber of Commerce and the National Association of Manufacturers, with 120 completing the full questionnaire.

Cost is the biggest barrier to reshoring. Over half (57%) cited expense as the main reason for staying overseas, while 21% said the U.S. lacks enough skilled labor. Tax incentives, often highlighted by the Trump administration, were seen as less influential, with just 14% naming them a top factor.

Despite high-profile U.S. investments by tech giants—like Nvidia’s planned supercomputer facility and Apple’s $500 billion commitment—most firms remain unconvinced. Even with temporary tariff exemptions for tech companies, the administration is pursuing a national security review that could lead to more tariffs on critical technologies.

The financial burden of reshoring is steep. Eighteen percent of respondents said bringing operations stateside would at least double their costs; nearly half (47%) expected it to be even more expensive. As a result, 61% prefer shifting to countries with more favorable tariff environments. In addition to tariffs, companies also pointed to fluctuating raw material prices and evolving consumer demand as factors shaping their decisions.

The timeline for reshoring is another obstacle. Forty-one percent said it would take three to five years to rebuild domestic supply chains; 33% estimated more than five years. If manufacturing does return, automation—not human labor—will likely dominate. A striking 81% said they’d rely more on machines than workers. Labor and layoffs are also top of mind. Respondents were nearly evenly split on plans to cut staff, with 47% expecting reductions and most saying decisions will be made within the next nine months.

The immediate fallout from tariffs is already clear: 89% of companies have canceled orders, and 75% anticipate a dip in consumer spending. Meanwhile, 61% expect to raise prices on affected products.

“The immediate impact is order cancellations, and the risk of consumer pullback is real,” said Mark Baxa, CEO of the Council of Supply Chain Management Professionals.

Overall, the survey suggests Trump-era tariffs are prompting a global supply chain rethink—but not a return to U.S. manufacturing. For now, cutting costs remains the dominant strategy.

Source: GlobeSt.