The primary strategy for supply chain response to tariffs: shifting costs to customers

According to Gartner's survey, 45% of supply chain leaders plan to pass on costs to customers as their primary strategy in response to new tariffs. Another 43% of respondents stated that they will reduce costs through various supply chain optimization measures

Gartner conducted a survey of 126 supply chain leaders from March 17, 2025 to April 7, 2025, to understand their planned responses to new tariff policies and specific mitigation measures. Eligible organizations report that the annual revenue of the entire enterprise is at least $50 million, with 83% of respondents coming from organizations with revenue of $1 billion or more.

Vicky Forman, Senior Director of Supply Chain Business at Gartner, said, "Supply chain leaders have many potential levers in reducing new costs related to tariffs." "Although supply chain leaders are taking multiple measures to potentially reduce the impact, many of these actions have not yet been completed

92% of respondents indicated that "cost increase" is the biggest risk associated with the new tariffs, but 75% of respondents also listed "slowing customer demand" as one of the three major concerns for business risk. Specific risks include: a decrease in overall consumer demand (49% mentioned), as well as concerns that international customer demand may be affected by retaliatory measures (45% mentioned).

Given this, Forman emphasized the importance of many supply chain initiatives that can help organizations reduce new tariff costs, especially in the long run. The most frequently mentioned supply chain response measures implemented (or planned) by respondents include:

>Renegotiation of supplier contracts (47%)

>Explore opportunities for collaboration with suppliers (43%)

>Adjust trade management strategies such as origin and valuation (40%)

>Transfer the supply location to areas outside the United States (39%)

>Moving production locations outside of the United States (26%)

>Advance stocking (23%)