50% of US firms consider price hikes. Reason? Trump's tariffs
What's the story
More than half of surveyed US companies intend to raise their prices due to tariffs imposed by President Donald Trump, a global survey by Allianz Trade found.
The research surveyed 4,500 exporters from China, France, Germany, Italy, Poland, Singapore, Spain, the UK and the US.
These countries together account for nearly 60% of the global GDP.
Survey results
Companies opt for price hikes over cost absorption
The survey found 54% of US firms intend to increase their prices, while only 22% of the 4,500 surveyed companies can absorb the increased costs.
The pricing strategy change comes in response to Trump's tariffs on nearly all US trade partners announced on April 2.
The unpredictability of US trade policy has also shaken exporters' confidence with many now predicting a turnover decline between -2% and -10% over the next year.
Retail impact
Walmart warns customers of price hikes
Retail giant Walmart has also warned its customers about possible price hikes on everything from bananas to car seats due to Trump's tariffs.
Despite attempts to absorb these costs, the size of the duties has made higher prices unavoidable.
Walmart's Chief Financial Officer John David Rainey stressed that prices are rising not just for discretionary items but also basic necessities.
Strategic shifts
Companies adopt strategies to mitigate tariff impact
In the wake of high uncertainty, many companies are mulling diversifying their supply chains and customer bases. The strategy involves looking for alternative shipping routes to deal with customs fees.
Over half of the respondents in Allianz Trade's survey see geopolitical risks as a top business threat.
The research was conducted before and after Trump announced duties on nearly all US trade partners, showing a huge shift in corporate strategy after these tariffs.