Increase in Operating Costs by Double Digits Due to Tariffs Experienced by Almost Half of Businesses, According to Survey
In a recent survey by Endeavor Business Intelligence, it has been revealed that business leaders are significantly adapting to the impact of Trump's tariffs on their operations. The survey, which polled over 500 executives, indicates that nearly 70% of respondents are experiencing significant operational impacts due to tariffs imposed by the Trump administration and retaliatory actions by trading partners.
Key adaptations highlighted by the survey include price increases, strategic responses, and permanent changes to business models. Over half of the respondents have raised prices since spring due to tariffs, with more than half reporting double-digit increases in operating costs. About 18% of executives have permanently adapted their business models to the tariff environment, up from 7% three months prior, showing a growing acceptance that tariffs will have a long-term presence.
Roughly one in six executives are still developing tariff response strategies, indicating continued adjustment and uncertainty. These changes reflect a staggered but intensifying impact, with costs and operational challenges expected to continue into the following year. Companies exposed to tariff-sensitive inputs or specific markets experienced pressures earlier, while others feel the effects gradually.
Industry insights reveal supply chain and financial management adjustments, such as focusing on supplier relationships, localizing operations, and improving margin visibility through detailed landed-cost models, especially within retail sectors affected by these tariffs.
The survey findings suggest a continuing wave of operational and cost challenges that may extend well into next year. EBI analysts report that companies most exposed to tariff-sensitive inputs or markets have experienced the pressure first, with a more gradual build for others. The challenges are weighing heavier now than they were in May, when the EBI team last conducted a similar poll.
Interestingly, 19% of executives surveyed do not expect a significant impact from tariffs, while 46% report an increase in operating costs of at least 11%. The survey does not provide information about the impact of the recently implemented reciprocal tariffs.
In conclusion, the survey results support the idea that tariffs aren't going away for a good while, and business leaders are responding to these challenges with a mix of price hikes, operational shifts, and increasingly permanent changes to their business strategies to mitigate the ongoing costs and disruptions.
- The survey findings indicate that a significant number of business leaders in the industry, especially within retail sectors, are adapting their business models permanently to the tariff environment, using strategies such as focusing on supplier relationships and localizing operations.
- In the world of finance, over half of the executives polled have raised prices since spring due to tariffs, with more than half reporting double-digit increases in operating costs, demonstrating the direct impact of tariffs on the financial health of businesses.
