A new Plant Engineering study reveals that U.S. manufacturers are feeling significant cost pressures from tariffs, yet few are reshoring production due to high domestic costs and limited supplier options.
The Plant Engineering “Impact of Tariffs on U.S. Manufacturing” study offers an in-depth look at how tariffs and shifting trade policies are affecting the manufacturing sector. Two-thirds of respondents surveyed reported that their companies have been directly impacted by tariffs in the past year. A full 60% noted moderate to significant increases in operational costs, especially in categories like electrical components, semiconductors and raw metals.
To manage rising costs, most companies (55%) have passed them on to customers, while others are exploring alternative suppliers (38%) or absorbing costs internally (33%). Despite widespread disruption, reshoring remains limited — only 6% of companies have brought operations back to the U.S. and 55% have no plans to do so. Barriers include high labor costs and a lack of domestic supplier capacity.
Some organizations are adapting by investing in lean manufacturing (36%) and automation (33%), but just 26% have formal plans to prepare for future tariff changes. Many respondents cited limited visibility into the full landed cost impact of tariffs and uncertainty around the tools their companies use to monitor costs.
Overall, 54% of respondents view current tariff policies negatively. While there’s strong interest in U.S.-based sourcing, cost remains the top concern. Manufacturers are calling for more government support — particularly in the form of tariff exemptions, regulatory relief and tax incentives to make reshoring more feasible.
To download and read the full report, click here.
