Reshoring: The Risks of Bringing Business Operations Back to the U.S.

For many North American multinational companies, the recent acceleration of U.S. tariffs has sparked new conversations about reshoring or bringing business operations back to the United States. According to The Hartford's 2025 Risk Monitor Survey, 39% of business leaders say they are planning to exit or reduce their overseas operations, though most rank regulatory concerns above potential duties as their reason for doing so.¹

It’s unclear how much reshoring or nearshoring will happen in response to recent geopolitical and trade events, but for many, moving certain global operations inside or near one’s borders is far from an overnight process. Given potential costs, planning and industry specifics, some leaders will need years to bring operations closer to home.

That’s because adjusting a global footprint is now a surprisingly similar process for businesses of all sizes. Each can face a unique and complex web of financial, supply chain and regulatory decisions as they weigh bringing operations stateside.

Reshoring can change a company’s risk profile as well. Domestic insurers with a global reach will be invaluable in identifying and closing potential coverage gaps ahead of any cross-border move.

Evaluating the Rewards and Risks of Reshoring

After years of aggressive overseas expansion, The Hartford’s Risk Monitor report finds that roughly two-thirds of business leaders are rethinking their global footprint for these reasons:²

They are worried about economic trends such as inflation (69%).
Supply chain disruptions are a major risk concern (62%).
Potential business interruption risks are worrisome (59%).

For most business leaders, reshoring production back to the U.S. will require significant reinvestment, and new risks can also emerge when reshoring. This includes potentially higher labor and infrastructure costs, a greater need for new tax and regulatory strategies, and the ever-present threats to supply chain resiliency no matter where the company locates its operations.

But generally, leaders are reporting they want more control at a time when geopolitical, supply chain, climate and trade turbulence could have an even bigger impact on operating costs.

What Business Leaders Should Consider Now

Bring insurance carriers and risk managers in early: Ideally, experienced global insurers with a deep understanding of a company’s offshore operations will be best qualified to spot and address potential risks as those operations return to the U.S. Designing a reshoring move should begin with a broad look at potential risks.
Stay close to policy developments: Trade policy action at the start of 2025 was moving quickly. The Hartford’s Global Insights Center now updates worldwide tariff activity monthly. Look for the Tariffs Tracker in the appendix section of the newsletter.
Consider an enterprise-wide financial analysis: Business leaders need to know all the long- and short-term benefits of reshoring versus keeping international operations where they are.
Stress-test supply chain resilience now: Companies should weigh whether existing offshore suppliers face high risk due to tariffs, geopolitical tensions or compliance issues and whether domestic suppliers might provide more business resiliency overall.
Evaluate talent needs: Is there a skilled labor pool available domestically to support reshoring operations at a cost the company can afford?

Companies that begin to work early with risk management and insurance professionals can identify potential vulnerabilities before reshoring. These professionals can also identify and design integrated insurance solutions that encompass and protect against new property risks, liability issues and financial uncertainties that reshoring can bring.

Learn more from The Hartford's 2025 Risk Monitor report.

^1,2 The Hartford’s 2025 Risk Monitor Report, viewed April 2025.