The Enterprise Reset: Navigating Tariffs, Supply Chain Shifts and Cost Pressures

The Trump administration’s unpredictable and sweeping tariff strategy, centered on an unfolding trade war with China, is colliding with an already strained supply chain landscape, leaving chief operating officers (COOs) across industries racing to adapt.

PYMNTS Intelligence research reveals that a major operational pivot is underway, as enterprises, especially those in the goods and technology sectors, move to mitigate disruption and harness potential upsides. With cost pressures intensifying and logistics increasingly unpredictable, the message is clear: Survival requires reinvention.

In a survey of 60 United States companies with revenues exceeding $1 billion conducted in early April — including days after the “Liberation Day” announcement of new or steeper levies on major trading partners, “reciprocal” duties on nearly all global imports, a subsequent 90-day pause on some tariffs and, on April 10, a 145% levy on Chinese imports — nearly all goods enterprises say they expect to pay more for raw materials and finished goods as a result.

But the story doesn’t end there. The goods, technology and services sectors are feeling the impact of new tariffs. Nearly 9 in 10 COOs agree it will lead to greater economic uncertainty and planning challenges.

Cost-cutting and operational efficiency are at the center of enterprises’ responses. Such moves signal a decisive break from the business-as-usual climate, with many companies replacing suppliers, redesigning their products or leaning into just-in-time inventory models.

These are just some findings from “The Enterprise Reset: Navigating Tariffs, Supply Chain Shifts and Cost Pressures,” a PYMNTS Intelligence study. Data was collected from a survey of 60 COOs, each representing a U.S. company generating at least $1 billion in annual revenue, that was conducted April 1 through April 11, 2025.

• Tariffs Hit Smaller Enterprises Hardest
• Efficiency Overhaul Underway
• Buy, Replace, Redesign
• Tariffs Trigger Turbulence — but Also Local Opportunity
• Read More
• Methodology

Tariffs Hit Smaller Enterprises Hardest

Three-quarters of enterprises expect shortages or delays in receiving certain imported raw materials or products because of tariffs. Small firms are the most concerned.

Tariffs are straining global supply chains across the board, but the most acute pressure is falling on small enterprises — those generating annual revenues between $1 billion and $5 billion. More than 9 in 10 of these companies expect shortages or delays in acquiring critical products due to the direct impact of the levies. That’s above the 66% average reported by large firms with revenues of more than $5 billion.

This divide highlights the fragility of supply chains, which are often scaled for the largest companies. Small enterprises typically lack the buying power or global footprint to hedge against disruptions, making them especially vulnerable when overseas inputs are delayed, re-priced or restricted. These shortages aren’t isolated — they ripple into production timelines, buyer commitments and revenue forecasts.

Across all company sizes, 3 in 4 enterprises expect to face product shortages or delivery delays tied to tariffs. But the variations across industries are also significant. Technology companies and goods manufacturers report higher-than-average expectations for disruption, driven by their reliance on globally sourced components, semiconductors and raw materials. At 86% and 85%, respectively, goods enterprises and technology firms are more likely to expect shortages or delays than services enterprises, at 62%.

These findings underscore the importance of agility and foresight in supply chain planning. As tariffs reshape global sourcing dynamics, firms that fail to diversify or localize their supplier base risk persistent shortages, disruptions to operations and lost market share.

Efficiency Overhaul Underway

In response to rising pressures, 92% of COOs are pursuing at least one cost-cutting strategy. At the same time, 87% are rethinking their supply chains.

Enterprises are responding to the tariff environment with layered strategies. These strategies stretch across cost management, supply chain adaptation, adjusted pricing models (raising prices for consumers) and market expansion. Rather than relying on a single lever, companies are activating a combination of tactics to protect their margins, retain customers and remain competitive in a shifting global business environment.

Cost and operational efficiency top the list, as 92% of COOs indicate they will adopt at least one measure related to this category, which includes workforce reductions. Similarly, 87% of COOs plan to adopt at least an adjustment to their supply chains. This can include finding new suppliers and reconfiguring product materials.

Beyond these operational and supply chain changes, enterprises are also exploring market expansion and growth strategies, with 77% of firms indicating this response. Seven in 10 enterprises surveyed are also considering pricing and product strategy adjustments.

Looking at these potential responses by industry segment reveals different priorities. Goods enterprises intend to achieve cost and operational efficiency (91%) and supply chain adaptation (81%). Meanwhile, 85% of technology enterprises demonstrate intent in cost and operational efficiency measures, and 92% in supply chain adaptation. Services enterprises show lower, although still substantial, percentages across these categories.

What stands out is the breadth and urgency of action. Enterprises are not treating tariffs as a temporary nuisance. They are redesigning key parts of their business to withstand future rounds of economic friction that may unfold as a result of the levies. In doing so, they’re building leaner, more responsive models and are ultimately more prepared for a future defined by disruption.

Buy, Replace, Redesign

While 60% of goods enterprises are replacing suppliers, 55% are leaning into just-in-time inventory, and half are redesigning products to adapt to ongoing disruptions.

Enterprises are no longer in planning mode. They’re executing real, measurable changes in response to the pressures created by new tariffs. Data reveals a decisive shift from theoretical mitigation to operational implementation.

Among goods enterprises, 60% are already in the process of replacing affected suppliers, favoring domestic sources or regions less affected by tariffs. Just-in-time inventory systems are also gaining traction, with 55% of goods companies adopting this approach to minimize storage costs and reduce overcommitment to volatile suppliers.

Product redesign is another major lever. Half of goods firms are re-engineering their offerings to use alternative materials that are either tariff-exempt or more readily available from domestic sources. This strategy addresses cost and provides a route to innovation. With it, products become more adaptable, modular and efficient in their resource use.

Other actions include trimming operational fat. Half of enterprises have cut costs across areas such as logistics, labor or infrastructure. Companies are also pursuing high-margin product expansion and the rollout of value-added services, but to a lesser extent — these are longer-term plays aimed at justifying price increases or reaching new markets.

Four in 10 technology companies say they have already passed price increases on to customers. By contrast, no goods enterprises had yet done this at the time of the survey. This suggests that these sectors have felt the impact of tariffs differently, whether in a higher cost of raw materials or in the form of supply chain challenges.

Absent is passivity. The share of companies reporting “no action taken” in response to tariffs is virtually nonexistent. Across industries, COOs treat the duties not as a temporary disruption but as a structural shift requiring a permanent evolution in how they do business, regardless of how long the levies last. Enterprises acting decisively today are more likely to be agile, cost-competitive and geopolitically insulated tomorrow.

Tariffs Trigger Turbulence — but Also Local Opportunity

Among goods companies, 95% expect price hikes.

Tariffs, often seen as a blunt knife to operations and revenues, are proving to be a double-edged sword. While they introduce costs and, when policy is continually shifting, uncertainty, they also present an unexpected silver lining: local opportunity. Ninety-five percent of goods enterprises expect the prices they pay for imported raw materials and finished goods to rise.

While all eyes are on goods and retail enterprises, tariffs also affect technology firms, given their reliance on imported components, chips that form the basis of modern consumer electronics and cloud infrastructure. As such, 85% also cite the higher cost of materials as a major risk.

The primary negative consequence all enterprises expect is greater economic uncertainty and planning challenges. Nearly 9 in 10 anticipate this negative effect. Technology enterprises are particularly likely to agree, with 92% foreseeing heightened uncertainty for the business environment and economy. Eight in 10 firms note the higher cost of reconfiguring supply chains as a potential negative impact. Ninety-two percent of technology firms predict that outcome.

Additionally, 3 in 4 enterprises anticipate that tariffs will lead to shortages or delays in getting certain products. Eighty-five percent of both goods and technology firms cite this consequence. Roughly 6 in 10 companies across all sectors mentioned reduced competition and potential layoffs or reduced hiring as other negative consequences. At 71%, goods enterprises are the most likely to report layoffs, followed by technology firms at 62%.

Enterprises also see some positive impact.

Despite these challenges, enterprises perceive positive impacts in addition to local opportunity. Ninety-six percent of goods enterprises say tariffs will fuel support for the local economy. Enhanced supply chain resilience is another potential positive outcome, identified by 88% of enterprises. Firms also list having more resources to invest in innovation as a potential upside. This is especially true for technology firms, including those developing artificial intelligence. These findings suggest that as enterprises confront tariff-driven turbulence, many are learning that building domestic strength can be more than defensive — it can also be strategic, creating competitive advantage in their own backyards.

Read More

PYMNTS Intelligence is the leading provider of information on how the tariff situation is impacting businesses. To stay up to date, subscribe to our newsletters and read our in-depth reports.

• Tariffs and Business Uncertainty: The Current State of Play, May 2025
• Tariffs and Business Uncertainty: The Current State of Play, March 2025

Methodology

This edition of the 2025 Certainty Project, “The Enterprise Reset: Navigating Tariffs, Supply Chain Shifts and Cost Pressures,” is based on a survey conducted from April 1 through April 11, 2025. It examines perceptions of uncertainty surrounding the volatile trade and macroeconomic environment, focusing on U.S. tariffs and how enterprises manage related risks. The survey collected responses from 60 chief operating officers. Each represents a U.S. company with at least $1 billion in annual revenue.