Despite recent U.S. trade negotiations with China and the U.K., the uncertainty around tariffs remains a driving force in supply chain decision-making. Supply chain leaders are preparing for impending tariffs in variety of ways, however, almost half (45%) anticipate passing on costs to their customers as the primary strategy, according to “How Supply Chains Are Responding to New U.S. Tariffs and Policies”, new research conducted in March and April by analyst firm Gartner, Inc.

A different Gartner survey of Chief Supply Chain Officers (CSCOs) released in March, the 2025 Tariff Volatility Survey, found that most CSCOs have an “all-or-nothing” approach to tariff pass-through, with the majority either passing on 20% or less of costs (35%) or between 80% and 100% of costs (31%).

Gartner's research on supply chain response to tariffs found that the other initiatives organizations are pursuing to mitigate new tariff impacts – beyond passing costs to customers – include renegotiating supplier contracts (47%); exploring collaboration opportunities with suppliers (43%); addressing country of origin, valuation and other trade management tactics (40%); and pulling inventory forward (23%).

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