Trade Policy Uncertainty: A New Report on Supply Chain Leaders’ Challenges
Trade policy uncertainty is creating significant challenges for supply chain leaders, forcing them into tough decisions regarding pricing, sourcing, and inventory management. This information stems from a preview of RELEX Solutions’ third annual State of the Supply Chain report. The findings, based on a January survey of 514 leaders across retail, manufacturing, wholesale, and supply chains, indicate that 86 percent of participants have already felt the effects of tariffs or trade policy changes.
Shifts in Pricing and Sourcing
Respondents reported notable adjustments in their pricing strategies, with over half—51 percent—raising consumer prices to offset rising costs. This marks a significant increase from 2025, where only 31 percent had done the same. Additionally, nearly a quarter of leaders have shifted their sourcing away from countries affected by trade policy changes, while 18 percent have restructured their supply chains or postponed investments.
Inflation continues to be the most pressing issue, with 34 percent of respondents citing rising input costs as their primary concern, surpassing tariff-related pressures (17 percent) and labor shortages (15 percent).
“Whether tariffs are imposed, revised, or struck down, the reality for supply chain leaders is the same: trade policy shifts are happening quickly with limited lead time,” said Laurence Brenig-Jones, VP of product strategy at RELEX Solutions. “Our data shows companies are already adjusting pricing, sourcing, and inventory strategies in response to that uncertainty.”
Diverging Inventory Management Strategies
The report highlights a split in how companies approach risk management. Twenty-eight percent are opting to build strategic stockpiles to ensure product availability, while 27 percent are returning to lean inventory models to manage costs. This divergence reflects two opposing concerns: avoiding out-of-stock situations on one hand and managing cash flow and markdown exposure on the other.
This split resembles patterns observed in 2025, where 30 percent of manufacturing leaders maintained lean inventories while 25 percent built safety stock amidst inflation and recession fears.
Retail Strategies: Promotions and Private Labels
Retailers are facing significant margin pressures, with 49 percent identifying this as their biggest operational challenge. Nearly half (47 percent) are ramping up promotions to attract price-sensitive shoppers, and 28 percent see promotions as their primary strategy for maintaining performance. Additionally, 25 percent are expanding their private labels or value-oriented product lines.
Conversely, manufacturers are taking a different path. Forty-five percent are passing rising input costs onto customers, 43 percent are adjusting pack sizes to meet price sensitivity, and 26 percent are diversifying their supplier networks.
Emphasizing Resilience
Companies are beginning to acknowledge that volatility is the new norm rather than a temporary disruption. Fifty-nine percent are reinforcing logistics partnerships, 37 percent are broadening their supplier bases, and 28 percent are increasing their safety stock. Half of the respondents anticipate global disruption to remain the main challenge impacting supply chain performance over the next three years.
Despite these challenges, 77 percent express a sense of optimism—or cautious optimism—about the next 12 to 18 months, although only 20 percent describe themselves as outright optimistic.
The comprehensive 2026 State of the Supply Chain report, which will offer deeper insights into technology adoption and priorities in AI investment, is expected to be released in late March.
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