Despite a brief reprieve by US President Donald Trump's administration in order to allow for negotiations to take place with trade partners, many companies are raising prices to cope with the possible impact of higher tariffs coming into effect.

According to a global survey by Allianz Trade released Tuesday, more than half of surveyed companies in the US plan to raise prices on their products, ultimately passing on costs to American consumers. This comes as the clock ticks down on the 90-day pause on "reciprocal tariffs", set to expire on August 14 unless it is extended further, and days after American retail giant Walmart said it was unable to absorb all the costs of the tariffs.

"Few companies intend to absorb increased costs or cut export prices to maintain market share," Allianz Trade said, adding that its findings indicate 42 percent of exporting companies anticipate turnover to decline.

For many small and medium-sized businesses, navigating operational issues and increased costs arising from tariffs remains front and centre.

In a recent article by Time, one business owner who sells compostable bin bags, baby wipes, and diaper bags on Amazon in the US and UK said "the uncertainty makes doing business very difficult."

In an unintended boomerang, the policy which was meant by the Trump Administration to regain the US's competitive advantage has instead seen businesses resort to seeking favourable partnerships elsewhere.

Europe and Latin America are emerging as attractive alternatives for Chinese firms, said Françoise Huang, senior economist for the Asia Pacific at Allianz Trade, adding that "European companies are increasingly interested in exporting to China and Asia".

Meanwhile, China, in the days after the tariff pause was announced, saw container bookings for China-US bound routes soar nearly 300 percent, Time also reported.

(Cover image via VCG)