Nearly half of supply chain leaders plan to pass on tariff costs, says survey

A new survey from Gartner Inc. found that 45 per cent of supply chain leaders plan to pass tariff-related costs directly to their customers, while 43 per cent are prioritizing internal supply chain initiatives to manage the impact.

The survey, conducted between March 17 and April 7 polled 126 supply chain executives from companies with annual revenues of at least $50 million. A majority — 83 per cent — came from firms generating more than $1 billion.

“Increased costs were cited as the top risk by 92 per cent of respondents, but concerns extend beyond margins,” said Vicky Forman, senior director analyst in Gartner’s Supply Chain practice. “Many are also worried about reduced customer demand and the threat of retaliatory trade actions.”

Seventy-five per cent of those surveyed ranked declining demand among their top risks, with 49 per cent flagging an overall dip in consumer appetite and 45 per cent citing potential international backlash due to tariff policies.

To mitigate these challenges, leaders are pursuing a mix of strategies. Common actions include renegotiating supplier contracts (47 per cent), improving supplier collaboration (43 per cent) and addressing trade management tactics such as country of origin and product valuation (40 per cent). Other measures involve relocating supply or production outside the U.S. and pulling forward inventory.

While many initiatives remain in progress, Forman emphasized the long-term value of these approaches in helping companies weather the cost pressures of shifting trade policies.