The poll, conducted in early November, found that more than half of those companies have plans to adjust their supply chains, which include shifting manufacturing sites or investing in new ones to circumvent additional tariffs that the U.S. and its trading partners — including China and the European Union — have imposed on each other.
A supply chain is a network between a company and its suppliers to produce and distribute the firm’s products.
Citi can’t name those companies and their specific plans, but said some of their clients are shifting part of their network to Southeast Asia. Nearly three-quarters of the firms polled expect global trade tensions to prolong, with discussions between the U.S. and China to last more than a year.
Half the companies polled said their supply chains were already affected by the tariffs, while the other half expect to see some impact next year.
“This client poll underlines how companies are already proactively adjusting to the realities of the trade tensions,” Rajesh Mehta, the bank’s head of treasury and trade solutions for Asia Pacific, said in a statement.
Source : CNBC