Supply Chain Decision-Makers Lack Formal Method for Modeling Tarriff Costs: Survey

Nearly one-third admit their companies have no formal contingency plan for sudden tariff changes, while 34% say their existing plan required significant adaptation.

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The Supreme Court’s decision to strike down most Trump-era tariffs was followed almost immediately by the reinstatement of a 15% universal tariff under different legal authority, creating another wave of uncertainty for product-based businesses.

For operators, finance leaders, and supply chain teams, the policy shift required immediate operational decisions.

A recently released DOSS survey reveals delayed launches, pricing bottlenecks, strained teams, and a growing urgency around real-time visibility.

Key takeaways:

  • Nearly one in five decision-makers (19%) admit their companies have no formal method for modeling tariff costs.
  • More than half of decision-makers (53%) say they are spending more time reacting to trade policy changes than investing in long-term growth.
  • Nearly half of decision-makers (47%) whose companies rely on spreadsheets to model tariff costs lack confidence that the approach can keep pace with frequent policy changes.
  • Passing increased tariff costs on to customers (33%) is the most common strategy companies are using to manage rising expenses, according to decision-makers.
  • Nearly seven in 10 decision-makers (69%) do not believe the Supreme Court’s check on executive tariff authority makes trade policy more predictable.
  • 43% of decision-makers say their companies paused or delayed a major product launch within the past 90 days due to tariff-related uncertainty.
  • 45% report holding excess inventory longer than planned, and 58% say their companies absorbed costs they initially intended to pass on to customers.
  • 40% say their companies began repricing affected goods or services in response to tariff changes. Meanwhile, 25% accelerated purchases to lock in pricing, and 25% re-forecasted revenue or margin projections.
  • Nearly one-third (29%) admit their companies have no formal contingency plan for sudden tariff changes, while 34% say their existing plan required significant adaptation.
  • Only 11% say their companies can reprice goods in under a week after a tariff change. In contrast, 48% report it takes three weeks or more, and 17% say their companies have not repriced at all.
  • 31% of decision-makers say their companies rely on manual spreadsheets to model tariff costs. By comparison, 24% use ERP systems with trade modules, 18% use dedicated trade management software, 8% outsource modeling to a third party, and 19% report having no formal method in place.
  • Just 16% say they are very confident their company’s cost-modeling approach can keep pace with frequent tariff changes. Another 44% say they are somewhat confident, while 16% express a lack of confidence.
  • Among decision-makers whose companies rely on spreadsheets, 47% say they lack confidence that their modeling approach can keep up with policy volatility. That lack of confidence is 2 times more than ERP users.
  • When managing increased tariff costs, 33% say their companies pass costs directly to customers, while 28% split costs with customers and 13% vary their approach by product line. Additionally, 11% renegotiate with suppliers, 11% absorb costs internally, and 3% reduce product scope or quality.
  • On average, decision-makers report that 38% of their company’s revenue is directly impacted by tariff policy changes.
  • 53% of decision-makers say their companies are spending more time reacting to trade policy changes than investing in long-term growth. At the same time, 40% report accelerating or planning technology investments in response to tariff volatility.
  • Customer pricing uncertainty (26%) is the most commonly cited operational challenge. This is followed by difficulty forecasting costs (18%), inventory planning disruptions (16%), and cash flow or working capital strain (12%).
  • 11% say their companies have already increased technology investment due to tariff volatility. Another 30% plan to increase investment, and 28% are currently evaluating whether to do so. Meanwhile, 21% report no plans to increase spending, and 11% cite budget limitations.
  • 33% say their companies have delayed hiring plans, 30% report increased workload or overtime, 26% report employee burnout, 23% say new role approvals have been paused, and 17% report increased employee turnover.
  • 60% agree their companies need real-time visibility into costs to manage tariff volatility effectively. However, only 38% believe their current systems are equipped to handle ongoing instability. Additionally, just 31% believe the Supreme Court’s judicial check on tariff authority has improved trade policy predictability.
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