Are Trump Tariffs Working? Companies Bring Production Home but Here’s Why

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A new survey shows 90% of U.S. companies plan to reshore or switch to domestic suppliers in response to Trump-era tariffs—but there’s a big catch: your prices are still going up.
In this episode:

• Why tariffs are prompting a wave of reshoring—but not in high-tax states
• The top 3 barriers to bringing production home: suppliers, costs, and labor
• The labor gap: 7 million able-bodied men have dropped out of the workforce
• The welfare state’s hidden impact on hiring and reshoring efforts
• Why companies are still quietly planning price hikes to offset tariff costs
• How states like Florida and Texas could win big—if they’re ready

This is everything you need to know about tariffs!

www.watchdogonwallstreet.com

Episode Transcript

Speaker 1 (00:00):
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact it we'll have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader Chris Markowski.

Speaker 2 (00:16):
Very interesting, are the tariffs causing companies or forcing companies
to resure? Listen? Interesting survey I was taken a look at,
and you know, as far as this numbers, and I'm
sure the administration is going to seize upon this. Nine
out of ten companies said they expect to bring some

(00:39):
or all of their production or sourcing back home in
response to the tariffs that Donald Trump imposed. Interesting. Now,
this survey came out on May twentieth. It looks like
more hints that there's going to be an acceleration in
reshoring efforts as various different companies look to adapt to

(01:02):
the tariffs. They found ninety percent of companies planned to
reshore or switch domestic suppliers. They ranked we relanked. Actually
the United States companies ranked number one as far as
companies likely to reshore, Second was Italy and third with Spain. However, Okay,

(01:26):
fine print, yetta, look at the fine print on this one.
Because that's something that you always have to look at
fine print. When asked about the top hurdles standing in
the way of restoring supplier related issues and no longer
higher costs were the top choice compared to last year,
labor related issues round up the top three hurdles. Oh see,

(01:52):
I told you so. Yeah. We have very very low
new unemployment in this country, very low unemployment in this country.
We just watched a major debate take place with the
big beautiful Bill where you had Republicans, well, quasi republicans. Well,
I guess he's a Democrat. Now, Josh Holly basically say no,

(02:16):
you can't touch, can't touch medicaid. You had the President
of the United States say, don't blanking touch medicaid. If
you know how to game the system in this country,
you don't have to work. You don't really have to work.

(02:37):
Get seven million able bodied, not on disability, able bodied
men working age prime of their lives that are not
only they're not employed, they didn't file for unemployment. They
just are saying I'm out, I'm not in the labor force. Uh. Again,

(02:57):
We've created a welfare state that is allowed for this
to take place, and don't even get restarted on disability. Okay,
the things that you can get yourself put on disability,
it's quite frankly, it's ridiculous. We've gone off on it before,
and we all know, we all know people that oh
my god, my back is killing me all of a sudden,

(03:19):
right anyway, anyway, more than three quarters the companies pointed
to supply chain structure, their complexity, concentration, or competition as
a key threat to offshore production, with the high share
of dedicated declared reshoring intentions suggesting that firms see clear
benefits to simpler domestic supply chains. Yeah, you know that's

(03:43):
the case. But okay, even though they're reshoring, Okay, you're
like secus, see you live there, working well. Well. Your
prices are going up. The majority, overwhelming majority of US
firms say they plan to raise prices to offset the
effects of tariffs. Fifty four percent of US companies said

(04:05):
they would increase prices following the April tariff hike, up
from forty six percent beforehand. And again, little Birdie told
me that there's been a lot of wink wink, nod
nodding on this survey, saying I'm not going to say
open up my mouth. I'm not going to tell you
what I'm going to do because there's a lot of

(04:26):
fear involved. There's a lot of fear involved. You don't
want to draw the ire and the truth social posts
of the President of the United States. So okay, that's
where we're at right now. We shall see. But the
reality of the situation, like I said before, your prices

(04:47):
are going up, and they're going to go up significantly. Now. Granted,
you know, maybe we can get energy prices down and
that can help a little bit, but it's not going
to be able to help enough. You know. You look
with certain areas of this country quite frankly, again California,

(05:07):
you know, twenty dollars plus minimum wage burgers, how is
it going to fly here? And again, if companies are
going to do this, start buying a lot of real
estate in states like Florida and Texas and many others
that are low as far as state taxes are concerned

(05:29):
and regulation, because that's where everbody could have set up shop.
Not like these businesses are going to be moving back
to upstate in York by any stretch of the imagination,
or these high tax areas in the Northeast not going
to happen. That would drive their prices up even further.
So again, you know, if this is going to be
the case, make sure you lower your taxes in your state,

(05:52):
get on the phone and try to get them to
move their businesses there. But once again, you better have
the workers watchdog on Wall street dot com