Coupa: Nearly half of suppliers plan to increase prices due to tariffs
Tariffs are likely to bring higher prices and lower margins this holiday season.
That's according to new data from total spend management platform Coupa, which revealed that 49% of suppliers plans to increase prices, and 46% are already increasing inventory and stockpiling. The good news for consumers is that none of the suppliers surveyed plan to increase prices by more than 20%.
The majority (56%) of suppliers are planning for a 5% to 10% price increase, meaning average household budgets would need to adjust by at least $300 a month — on the low end — which, in combination with a decrease in non-essential consumer spending, will likely result in less gifts this holiday season, according to Coupa.
For the upcoming holiday season, toys and games (60%) and consumer electronics (50%) were top industries that identified tariffs as the largest threat to their business. The concern rings true on the buyer side as well: More than half (55%) expecting recent trade policies to cause a negative impact on their bottom line in 2025.
Coupa's research revealed that 88% of consumers believe that an increase in costs will be passed down to them as new tariffs are implemented. In addition, almost one-third (29%) of suppliers globally believe tariffs are the greatest external threat to profits in 2025.
Other highlights from the Coupa research are below.
Sourcing Shake-Up: Buyers Pivot to Nearshore Options Amidst Global Challenges
Three-quarters (75%) of buyers have increased or plan to increase nearshoring and 61% have increased or plan to increase onshoring. While 56% have increased or plan to increase offshoring, businesses are moving away from sourcing from China (36%), followed closely by the U.S. (29%) and Germany (23%) in response to predicted tariffs.
Suppliers with proven quality and reliability (60%), stable and competitive pricing (57%), and full compliance with regulations (42%) topped the list for buyer preferences.
Cost-Conscious Consumers Lead the Way
In the U.S., the majority (84%) of consumers cite cost over quality and variety as the most important factor when shopping. With concerns also growing over the rising cost of living (36%) and trade policies threatening to increase the cost of goods (24%), more than half of consumers (54%) say they have looked for deals or discounts on necessities, 53% have decreased spending on non-essential items, and 67% have adjusted where they spend for better cost options.
Consumers who are cutting back on non-essential spending have cut costs by dining out less (68%) or by swapping brand-name items for generics (52%). As consumers become more aware of how they can lessen the impact of tariffs on their wallets, businesses should note that non-essential spending is becoming less of a priority for consumers.
"Amidst the uncertainty of new and increasing tariffs, businesses that fail to swiftly adapt risk losing their competitive edge and will experience impact to their bottom-line,” said Nari Viswanathan, senior director, supply chain strategy at Coupa. “Now is the time for businesses to embrace AI and leverage technology and scenario modeling to fortify supply chain resiliency and safeguard profitability.”
Methodology
Coupa’s research consisted of three separate surveys. The first survey was conducted a among 400 managers and above responsible for procurement, sourcing, inventory, and pricing within organizations providing goods or services to other businesses or organizations (suppliers) with an annual revenue of $250 million-plus in the U.K., U.S., France and Germany. The research was conducted by Censuswide in March 2025.
The second survey was conducted among 400 managers and above with decision-making responsibility across procurement, sourcing, and inventory in organizations making purchases with suppliers with the goal of reselling or using their own operations/products (buyers) with an annual revenue of $250 million-plus in the U.K., U.S., France, and Germany. The research was conducted by Sapio Research in April 2025.
The third survey was conducted among 1,000 U.S.-based consumers over 18 years of age in April 2025 via Dynata.
