The Blubber

Most companies — particularly in the U.S. and China — say they plan to raise prices in response to the Trump administration’s broad tariffs on dozens of imported goods, according to a poll released Wednesday.

The latest Allianz Trade Global Survey, which compared company responses before and after the implementation of Trump’s “Liberation Day” tariffs on April 2, found that price increases are shaping up to be the primary strategy for navigating the trade war.

While many of the “reciprocal” tariffs are currently paused due to ongoing negotiations, a 10 percent baseline tariff remains in effect.

Globally, 38% of companies reported they will raise prices due to the tariffs — a 7-point increase compared to before President Trump’s new import taxes were announced, the report found.

The shift toward price hikes was most significant in the U.S. and China, where Allianz Trade said firms are reacting to tariffs that “reached levels that were way too high to stomach.”

In the U.S., 54% of companies said they intend to raise prices, up from 46% before the “Liberation Day” rollout, according to the survey.

In China, 45% of companies said they will raise prices — a 16 percentage point jump since last month’s announcement.

Allianz Trade said the rise indicates that the U.S. and China may be especially proactive in adjusting their pricing strategies in response to rising tariffs.

“Even though the new trade deal brings the U.S. average import tariff rate on China to 39 percent — down from an eye-watering 103 percent — this remains much higher than the 13 percent rate applied before the second Trump administration,” said Françoise Huang, senior economist for Asia Pacific and trade at Allianz Trade.

Despite the latest developments — including a 90-day pause on most retaliatory tariffs — experts say the pricing strategy is unlikely to change.

“Despite the recent positive developments, the trade war persists, and volatility in trade policies means that decoupling is likely to gradually continue,” the report concluded.