Companies around the world are bracing for production delays and cost-cutting as a result of the Trump administration’s barrage of tariffs, dampening their confidence, per a new study published Tuesday.
The Allianz (ALV-0.54%) Global Trade Survey indicated that exporters are dashing to readjust their supply chains to avoid the brunt of the tariffs. Global export losses could total $305 billion in 2025, the survey said, and less than half of companies now expect export growth. Around 27% of firms said they might have to briefly halt production due to currency volatility from the tariffs.
The survey was conducted with 4,500 companies in nine countries accounting for 60% of global GDP that included the U.S., U.K., China, France, Germany, and Singapore among others. Firms were surveyed before and after President Trump’s April 9 “Liberation Day” announcement that imposed a new tariff regime on most countries around the world.
The analysis also provided insight into how companies planned to deal with higher costs. “Price hikes are likely to remain the go-to strategy globally to counter tariff impacts,” according to the study. In the U.S., 54% percent of companies said they chose to raise prices, a much larger share compared to other countries due to the steeper tariffs U.S. firms are exposed to with Chinese imports.
President Donald Trump scolded Walmart (WMT+0.77%) on Saturday for warning that it intended to raise prices on its products as soon as this month to soften the blow from tariffs. He said Walmart should “EAT THE TARIFFS” in a social media post, but Treasury Secretary Scott Bessent later conceded the low-cost retailer may offload part of the cost of the tariffs on its customers.
Latin America, meanwhile, is emerging as a low-key winner in the trade wars. European and Chinese companies are increasingly attracted to the region due to its easier access to North American markets and lower tariffs, the Allianz Survey said.
Ten of the 12 countries in South America are subject to a 10% import tax from the Trump administration, compared to the steeper tariffs in effect for Canada and Mexico, the BBC reported.
The post Tariffs are souring the mood for global exporters, study says appeared first on Quartz.
