by Harry Wilson
US businesses are the most worried about the impact of President Donald Trump’s shifting tariff policies on their revenues, with more than half projecting a hit of at least 25% to their revenue, according to a survey by HSBC Holdings Plc.
About a quarter of US companies that took part in the British lender’s trade survey released Friday said they were forecasting their revenues more than halving over the next two years due to the impact of the levies on their supply chains.
By contrast, Chinese businesses appear more sanguine about the impact with about a quarter projecting an impact of 25% or more on revenues, though more than half expect a 10% to 25% decline.
London-based HSBC is the world’s largest trade bank and its report is based on a survey of over 5,700 international firms in 13 countries. The bank said it had found widespread concern about the impact of tariffs, with two-thirds of respondents saying they had already experienced cost increases due to tariffs and trade uncertainty.
“Everyone we’ve spoken to is planning to reshape their supply chains, look at new markets or change their business model,” Vivek Ramachandran, head of global trade solutions at HSBC, said in a Bloomberg Television interview on Friday. After building supply chains over decades to minimize costs effectively, “now they need to become resilient and they need to actually be able to move based on geopolitical concerns. That’s a big concern for companies,” he added.
Copyright Bloomberg News
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