How AI and tariffs are impacting U.S. supply chains
Artificial intelligence and President Trump’s tariffs both had a significant effect on supply chain operations in the U.S. during the second quarter of 2025.
A survey of 250 senior U.S. business executives across several industries from global business and technology consulting firm West Monroe reveals that many companies are using artificial intelligence to enhance existing supply chain resources.
Top uses of AI in the supply chain among respondents include:
- Leveraging new AI capabilities from existing technologies/tools (58%).
- Upskilling employees to enhance AI proficiency and adoption (58%).
- Adopting entirely new AI-specific platforms or solutions (53%).
- Partnering with external AI providers or consultants (49%).
- Implementing customized AI solutions (46%).
Top AI challenges in the supply chain include finding the right tools (39%) and obtaining ROI from AI investments (27%).
[READ MORE: IBM: Supply chain execs see competitive edge in agentic, generative AI]
Trump administration effect on supply chain
When asked how the tariff policies of the Trump administration are affecting their supply chain operations, close to half (48%) of respondents said tariffs have created headwinds and had a negative effect. However, close to four-in-10 (38%) respondents said tariffs have created tailwinds and caused a positive impact.
The remaining 14% of respondents did not see any noticeable impact from Trump tariff policies on their supply chains.
According to West Monroe analysis, the elimination of DEI requirements in federal contracts and mandate for domestic vehicle parts were the largest points for respondents who cited tailwinds from the tariffs. Respondents who reported headwinds were most likely to cite the 10% minimum tariff.
Top supply chain priorities
Respondents identified the following leading priorities for their supply cbains:
- Cost containment amid economic uncertainty (20%).
- Improving inventory management (20%).
- Strengthening cybersecurity (15%).
- Diversifying supplier base (14%).
- Enhancing customer fulfillment speed (13%).
- Accelerating digital transformation initiatives (11%).
How supply chains manage volatility
When asked how they manage supply chain volatility, respondents said:
- Supplier diversity and responsibility (63%).
- Flexibility in logistics and transportation (61%).
- Technology and real-time analytics capabilities (55%).
- Inventory management and visibility (54%).
- Risk management and contingency planning (505).
- Workforce adaptability and expertise (44%).
West Monroe commissioned RepData LLC to survey 250 U.S. business leaders across manufacturing,retail, and distribution on supply chain issues in June 2025. The survey was conducted online and only titles of director and above qualified.
