Tariffs' Long-Term Consequences: Supply Chain Overhauls May Take Years

Trump's tariffs are meant to promote investment in domestic manufacturing, but experts say the reality of relocating supply chains is complicated and will not happen quickly. Honda is among the latest major companies to announce it's shifting its production to the U.S., moving its CR-V from Canada to the U.S. due to tariffs.

Other companies are also making moves, aiming to relocate supply chains and infrastructure to the U.S. amid growing concerns about the cost of importing goods from abroad due to President Donald Trump's tariffs. Hyundai has announced a $21 billion investment in U.S. growth from 2025 to 2028, while Stellantis will invest more than $5 billion.

Computer and technology companies are also making major moves. Apple and Nvidia each have announced $500 billion commitments to U.S. manufacturing and infrastructure. Apple plans to build a new plant in Texas, while Nvidia is committed to building AI servers domestically.

Medical research companies including Abbott Laboratories, Merck and Roche have also announced major U.S. investments.

"Thirty percent or less (of the companies) are going to actually follow through with the full intent of what they've announced," said supply chain expert Kimberly Reuter. "They're going to fall into a situation where it's just more complex and more difficult than they've even planned for."

Experts say relocating supply chains will not happen quickly. "It will take five years for us to have meaningful manufacturing here in the United States," Reuter said. "It would take 10 years plus for us be able to compete at the level of China."

While transitioning supply chains due to the tariffs could create more jobs, it could eliminate even more. A note last month from Goldman Sachs estimated the tariffs could create 100,000 manufacturing jobs but likely cause 500,000 jobs across other industries to be lost.