As the threat of tariffs looms, companies are rethinking their supply chains, particularly for exports to the U.S., according to Mary Lovely from the Peterson Institute. This shift involves reducing reliance on Chinese components, leading to higher costs. Firms like Steve Madden and Yeti are already sourcing less from China, resulting in increased expenses. The Trump administration’s push for reshoring could further hinder trade flows, prompting some companies to consider relocating production to other Asian nations or Mexico, as moving back to the U.S. is often deemed unfeasible.

Source: https://www.supplychaindive.com/news/supply-chains-created-serve-united-states-trump-tariffs/733552/