Trade Fears Have Global Businesses Worried, And Seeking Alternatives To U.S., China

Core Insights - Global business optimism has declined for the third consecutive quarter, primarily due to uncertainties surrounding U.S. trade and tariff policies [2][6] - A survey of 10,000 businesses indicates that optimism has decreased by nearly 20% in 2025, reflecting growing concerns over the challenging trade environment [2][3] - More than half of the surveyed international businesses are seeking alternatives to U.S. markets, with expectations that U.S. trade policies may worsen [4][6] Trade and Tariff Impact - The ongoing uncertainty regarding U.S. tariffs is prompting many international companies to explore new trading partners outside of the U.S. and China [4][6] - Businesses are increasingly prioritizing domestic markets and diversifying their supply chains in response to rising tariff pressures [4][6] Supply Chain and Investment Concerns - There is a notable decline in supply chain confidence, particularly among North American manufacturing businesses, which have been significantly affected by trade policies [5][6] - The report highlights that sectors such as metal manufacturing, capital goods production, and automotive have been hit hardest, leading to a shift in focus towards supply chain resilience over cost management [5][6][7]