Half of US Firms Have Changed Suppliers, Explored New Markets Due to Tariff Pressures

Core Insights - President Trump's trade agenda has significantly altered how companies source goods and structure contracts, with nearly 50% of American companies changing suppliers due to tariff policy shifts [1][4]. Group 1: Supplier Relationships - Over half (51%) of U.S. companies have established new supplier relationships in previously uncharted markets due to tariff pressures [3]. - 49% of companies have abandoned existing partnerships because of double-digit tariff increases, indicating a major shift in sourcing strategies for firms heavily reliant on international suppliers [4]. Group 2: Contract Management - 92% of surveyed companies are now incorporating tariff-related clauses in their agreements with suppliers and vendors to address the volatility in trade policy [3]. - The disruption caused by changing tariff regimes is leading to significant contract renegotiations and management challenges, emphasizing the need for clear responsibilities in agreements to build resilient supply chains [7]. Group 3: Business Concerns - The primary concern for almost half (49%) of the surveyed groups is the cost of imported materials and products, followed closely by worries about how tariffs could affect pricing and customer demand (47%) [5]. - Regulatory uncertainty and compliance challenges are a significant source of anxiety for 44% of companies, with reduced profit margins being a concern for 42% [6].