Some 86% of supply chain leaders have said that trade policy changes or tariffs have already affected their operations, often forcing them into making trade-offs, according to a report by RELEX Solutions.
The State of the Supply Chain 2026: Volatility, Trade-Offs & the Rise of AI report, found that supply chain firms are having to assess pricing, sourcing and inventory management amidst escalating inflation and geopolitical disruption.
More than half (51%) of respondents said that they have raised consumer prices to offset higher costs, with 18% restructuring their supply chains or delaying investments. Close to a quarter (24%) said that they have shifted sourcing away from countries that are directly affected by trade policy changes.
Inflation remains a key operational strain for firms, with 34% citing inflation and rising input costs as the ‘single biggest pressure’ on their supply chain, ahead of tariff and geopolitical pressures (17%) and labour shortages (15%).
Cost volatility
As RELEX noted, cost volatility is increasingly being embedded into long-term planning, while a strategic split in how firms are managing risk has also been observed.
Some 28% said that they are increasing inventory or building strategic stockpiles to protect availability, while 27% are returning to leaner models to control costs.
Many firms are also investing in resilience measures, with 59% strengthening logistics partnerships, 37% expanding their supplier bases, and 28% increasing safety stock. Half of respondents said that they expect global events and disruptions to remain the ‘biggest challenge to supply chain performance’ over the next three years.
Trade policy shifts
“Whether tariffs are imposed, revised, or struck down, the reality for supply chain leaders is the same: trade policy shifts are happening quickly and often with limited lead time,” commented Laurence Brenig-Jones, VP of product strategy, RELEX Solutions.
“Our data shows companies are already adjusting pricing, sourcing, and inventory strategies in response to that uncertainty.” Read more here.
