KeyCorp CEO talks tariff impact: ‘The notion of reshoring is real’

KeyCorp CEO Chris Gorman told CNBC's Jim Cramer that the U.S.'s new tariffs will likely lead to reshoring.
"I don't think there's any question," Gorman said. "If you think about Covid, and you think about the disruptions in the supply chains, I think the notion of reshoring is real."

KeyCorp CEO Chris Gorman told CNBC's Jim Cramer that the U.S.'s new tariffs will likely lead to reshoring.

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"I don't think there's any question," Gorman said. "If you think about Covid, and you think about the disruptions in the supply chains, I think the notion of reshoring is real."

President Donald Trump has targeted the U.S.'s trading partners, threatening many countries with steep import tax increases. The White House implemented a cumulative 145% tariff hike on goods from China, which is a top supplier for many U.S. companies.

Gorman suggested that most companies will have suppliers based in Mexico, the U.S. and Canada. He said many KeyCorp's customers are thinking about reshoring and their supply chains in general. A year from now, he continued, "there'll be more activity in the U.S."

He also struck an optimistic tone about the federal regulatory environment, mentioning that he recently spent time in Washington.

"What we really need is balanced regulation," he said. "It's important for safety and soundness of the system, and I think we can achieve that and also get some regulatory relief on things that, frankly, don't pertain to safety and soundness."