The outlook for tariff policies is unclear, geopolitical risks continue to rise, and the trend of global companies moving their supply chains out of China remains obvious, but the willingness to return manufacturing to the United States is limited. Companies are more inclined to transfer production capacity to friendly countries or neighboring markets.
A report recently released by BofA Securities pointed out that although the US government has implemented a “manufacturing repatriation” policy and imposed tariffs to encourage companies to move their production lines back to the country, when companies re-arrange their global supply chains, the main consideration is no longer the lowest cost, but how to avoid geopolitical risks.
