In a revealing market study, consumers globally have shown reluctance to pay premium prices for American-made products, even as tariffs drive up costs for alternatives manufactured in Asia. The findings challenge assumptions about shifting supply chains amid rising trade tensions.
Ramon van Meer, CEO of lifestyle brand Afina, discovered this firsthand when testing demand for a $129 filtered shower head. His China-produced product faced potential tariff hikes, prompting him to survey customers about paying extra for a US-made version. "Not a single respondent chose the American option," van Meer noted, highlighting consumer prioritization of affordability over production origins.
The results underscore a critical hurdle for businesses considering manufacturing relocations from Asia. While tariffs aim to incentivize domestic production, Asian manufacturing hubs like the Chinese mainland continue to offer cost efficiencies that resonate with price-sensitive buyers. Analysts suggest this dynamic could slow efforts to decouple supply chains from the region.
For investors and business professionals, the survey signals ongoing opportunities in Asian manufacturing networks. Meanwhile, academics note the data reflects deeper consumer behavior trends in post-pandemic markets, where brand loyalty increasingly hinges on value propositions rather than geopolitical considerations.
