Trade Tensions Reshaping U.S. Corporate Strategy, HSBC Survey Fi

• HSBC survey reveals U.S. firms facing tariff-induced cost hikes, yet remain optimistic about future international growth.
• 93% of U.S. companies express confidence in expanding international trade over the next two years despite current challenges.
• In response to trade disruptions, American businesses are increasingly focusing on strengthening domestic operations.

U.S. companies are experiencing heightened operating costs due to tariffs, with 72% of firms reporting increases above the global average of 66%, according to HSBC’s Trade Pulse survey. This survey indicates that 77% of these companies expect further cost rises by the end of the year, prompting a shift towards focusing on domestic markets in the short term.

Despite these challenges, 93% of American firms maintain confidence in their potential to grow international trade over the next two years. The survey, which included responses from 5,700 internationally active companies across 13 global markets and 1,000 U.S. based businesses, highlights the ongoing strategy adjustments being made by U.S. corporates.

Key findings show that 71% of U.S. companies are increasing their reliance on the domestic market due to current trade dynamics. Moreover, policies and economic uncertainties have led nearly three-quarters of U.S. firms to pause or reconsider long-term investments, while 52% find it difficult to forecast costs or demand for the upcoming year.

Amidst these challenges, American companies are leveraging the moment to drive innovation and future readiness. About 79% of respondents acknowledge that trade uncertainty has encouraged them to explore new opportunities. Initiatives include entering new export or import markets, developing new products or services, adopting new technologies, and enhancing supply chain visibility.

To bolster resilience, many U.S. firms are engaging in strategies such as reshoring (44%), nearshoring (41%), and friendshoring (42%). Ajit Menon, U.S. Head of Global Trade Solutions at HSBC, stated that American companies, despite facing economic strains, are responding with agility by digitizing operations and redesigning growth strategies to stay competitive globally.

HSBC Holdings plc (HSBC, Financial), one of the world’s largest banking and financial services organizations headquartered in London, conducted the Trade Pulse survey between April 30 and May 12, 2025, across 13 markets, including the United States. The bank continues to monitor and support its clients amid these complex global trade conditions.