Most companies are raising prices and shifting supply chains due to tariffs

Here’s another one for the “completely unsurprising tariff revelations” column.

A majority (54%) of US-based companies said they’ll need to raise prices following President Donald Trump’s so-called “Liberation Day” announcement, compared to 46% that said the same thing before the big April 2 reveal, according to an Allianz survey.

There’s been a tariff deal since Allianz conducted its survey. The US and China earlier this month agreed to a 90-day pause that lowers tariffs on Chinese imports from 145% to 30%, and lowers China’s tariffs on US goods to 10%. This likely changes little for pricing strategies, according to Allianz.

“Despite recent positive developments, price hikes are likely to remain the go-to strategy globally to counter tariff impacts,” the report states.

The insurance giant, which gathered responses from 4,500 companies globally in March and April, found that nearly three in five expect the trade war will negatively impact them.

What else they’re doing. Price hikes aren’t the only thing in organizations’ tool belts. They’re also shifting where they’re doing business. Roughly one in three respondents said they’ve already found new markets for suppliers or exports, and nearly two-thirds said they plan to do so.

Four out of five US-based companies said they frontloaded shipments from China before the new tariffs kicked in. A quarter did so even before the November presidential election. More than six in 10 companies surveyed after “Liberation Day” said they’d “seek alternative shipping routes to keep customs costs under control,” according to the report.

A little more than a fifth of respondents planned to absorb cost increases.

Divorce proceedings. The Allianz survey also showed fewer US companies were interested in exporting to China after the April 2 tariff announcement—and the same was true for Chinese companies.

The percentage of US businesses that said they intended to export to China and East Asia dropped 11 percentage points, to 10%. There was a similar 12 percentage-point drop (15% to 3%) in interest from Chinese companies to export to North America.

Even with the 90-day tariff pause in mind, “the trade war persists and volatility in trade policies means that decoupling is likely to gradually continue,” the report said.