The cost for U.S. and European companies to move manufacturing out of China could reach $1 trillion over five years, according to new research from Bank of America.
The survey of the bank’s global analysts found that companies in over 80 percent of global sectors experienced supply chain disruptions during the pandemic, prompting three-quarters to widen the scope of their re-shoring plans.
The research from BofA’s head of global research Candace Browning and her team comes as President Donald Trump on Tuesday pledged to offer companies tax credits to relocate their factories back to the U.S. from China, to reduce the country’s reliance on Beijing.
Click here to read the full report from Lina Saigol at MarketWatch.com.
“We will create tax credits for companies that bring jobs from China back to America,” Trump said in a speech to supporters in Mankato, Minn., according to Reuters.
