Here’s how supply chain execs are adjusting to tariffs
More than half of supply chain leaders have taken one specific action in response to tariffs put in place by President Donald Trump.
An 86% majority of supply chain executives say trade policy changes or tariffs have already impacted their operations. And 51% have raised consumer prices to offset higher costs caused by tariffs.
[READ MORE: Trump issues reciprocal tariffs]
In addition, a preview of the third annual Relex “State of the Supply Chain 2026: Volatility, Trade-Offs & the Rise of AI report” reveals that 24% of supply chain executive respondents have shifted sourcing away from countries directly affected by trade policy changes and 18% have restructured their supply chains or delayed investments.
The study examined organizational responses to a number of other supply chain issues:
External supply chain pressures
When asked to name the single greatest pressure on their supply chain, the top three issues cited by respondents were:
- Inflation and rising input costs: 34%
- Tariff and geopolitical pressures: (17%)
- Labor shortages: (15%)
According to Relex analysis, these findings suggest cost volatility is now embedded in long-term supply chain planning.
Operational challenges for retailers
Among retail respondents, 49% cite margin pressure as their biggest operational challenge and 47% are increasing promotions to address price-sensitive consumers. Close to three-in-10 (28%) retail respondents rely on promotions as their primary means of protecting performance, while 25% are expanding private labels or value-focused product lines to meet shifting demand.
Other findings
- Nearly six-in-10 (59%) respondents are strengthening logistics partnerships.
- Close to four-in-10 (37%) respondents are expanding supplier bases.
- Almost three-in-10 (28%) respondents are increasing safety stock.
- More than three-in-four (77%) respondents describe themselves as optimistic or cautiously optimistic about the next 12–18 months, although only 20% say they are outright optimistic.
"Whether tariffs are imposed, revised, or struck down, the reality for supply chain leaders is the same: trade policy shifts are happening quickly and often with limited lead time," said Laurence Brenig-Jones, VP of product strategy, Relex Solutions. "Our data shows companies are already adjusting pricing, sourcing, and inventory strategies in response to that uncertainty."
The Relex "State of Supply Chain 2026: Volatility, Trade-Offs & the Rise of AI" report is based on a January 2026 survey of 514 retail, manufacturing, wholesale and supply chain leaders conducted by Researchscape.
