Will Trump's Tariffs Cause a Style Crisis! Taylor Swift Sounds the Alarm!

China's Loss Not Necessarily America's Gain? Say It Isn't So!

Okay Swifties gather 'round because I've got some news that's making me feel like I'm about to write a breakup song about the economy! Apparently according to a CNBC Supply Chain Survey all this talk about bringing manufacturing back to the U.S. because of President Trump's tariffs might just be... a 'Delicate' situation. The survey says companies would rather scout for countries with lower tariffs than bring production back home because of the cost implications! I feel like I need a 'Blank Space' to process this!

Cost Concerns: 'All Too Well'?

So 57% of the companies surveyed are saying that cost is the main reason they're not reshoring. Finding skilled labor also doesn't seem to be as easy as writing a catchy chorus (21%). Even promises of tax cuts aren’t enough since taxes ranked pretty low in their decision making. I'm getting serious 'Bad Blood' vibes from these numbers! It seems like even the tech sector is a little skeptical. Nvidia's planning a supercomputer plant here and Apple's investing but overall companies are still hesitant. I guess sometimes even with the best intentions 'The Best Day' just isn't in the cards or in this case the economic forecast.

Double Trouble Double the Cost? Time to Shake It Off?

The survey suggests building a new supply chain here could double the costs (at least according to 18% of respondents while 47% think it'll be even *more* than double). Instead 61% are thinking about relocating to countries with lower tariffs. Consumer demand raw material prices and the administration's strategy (or lack thereof according to some) are also major concerns. And get this 61% of respondents feel like the Trump administration is 'bullying corporate America'! This is starting to sound like a scene straight out of 'Mean Girls' but with tariffs instead of social hierarchies.

The 'Long Game' of Reshoring: Are We Ready For It?

For those who *are* considering bringing things back 41% think it'll take three to five years and 33% think it'll take even longer. If manufacturing does come back automation is going to be HUGE. A whopping 81% say they'll use it more than human workers. Mark Baxa CEO of CSCMP says the U.S. labor market is a concern. Honestly with all this uncertainty it's enough to make you want to curl up with a cozy blanket and listen to 'Folklore' on repeat. But we can't because we need to understand the economy!

Layoffs and Order Cancellations? Sounds Like a 'Love Story' Gone Wrong!

Speaking of labor layoffs are a big worry. Companies are pretty split between planning headcount reductions (47%) and not (53%). Most are waiting to make staffing decisions for no longer than nine months. The biggest immediate impact of these tariffs? Order cancellations (89%) and a consumer pullback (75%). So basically everyone is taking a 'Wait and See' approach for now. For products under the new tariff rates 61% of companies are planning to raise prices. 'The immediate impact is order cancellations and the risk of consumer spending pullback is noteworthy,' said Baxa. Tell me about it!

Recession on the Horizon? Don't Blame Me!

A scary 63% of respondents are warning about a recession this year because of these tariffs. Half are expecting consumers to pull back in Q2. Steve Lamar CEO of the American Apparel & Footwear Association says that supply chains are already seeing damage. According to Lamar Higher prices job losses product shortages and bankruptcies will be only some of the adversity the U.S. economy weathers while the President pursues this ill advised tariff policy. But hey at least we have a soundtrack for the economic drama! What a time to be alive right? Here's to hoping we can 'Shake It Off' and find some 'Happiness' in the midst of all this uncertainty!