Businesses Face Profit Losses Due to Tariffs: New Survey Reveals Alarming Trends
A recent survey has unveiled that over three-quarters of companies across the U.S. and Europe are currently experiencing profit losses directly attributable to tariffs. This finding raises significant concerns about the long-term viability of many businesses as they navigate an unpredictable economic landscape.
Survey Insights
The poll, commissioned by Enable, a provider of pricing management software, was conducted by Censuswide in late June. It surveyed 1,500 senior pricing leaders across various sectors, including industrial, distribution, retail, and consumer goods, in the U.S., United Kingdom, and the DACH nations of central Europe.
According to the report, a staggering 76% of respondents indicated that their companies had already suffered profit declines due to tariff impacts by early summer.
Future Concerns
Looking ahead, 91% of participants expressed concerns about the ongoing ramifications of tariffs over the next 12 months. Notably, one-third categorized their concerns as “extremely worried.” Additionally, 84%
Despite these intentions, nearly 60% indicated that implementing necessary price adjustments could take weeks or even months. This timeframe could expose companies to a significant hurdle, as noted by Enable officials: “The dangerous gap between the speed of tariff changes and businesses’ ability to respond.” More than one-quarter of the respondents also expressed a lack of confidence in their organization’s pricing strategy, highlighting a critical area for improvement. Andrew Butt, founder and CEO of Enable, emphasized the importance of pricing agility, stating, “With costs shifting unpredictably, and 93% of businesses admitting their current pricing responsiveness risks further profit loss, pricing agility has become an essential survival skill. The lag between tariff updates and implementing price changes creates a window where competitors with faster pricing capabilities can capture significant market advantage.” In response to these challenges, more than half of survey participants are considering reducing costs in other areas. Additionally, 46% acknowledged that their companies may contemplate reducing activity or completely withdrawing from markets that impose high tariffs. The survey results underscore the urgent need for businesses to enhance their pricing strategies and responsiveness to navigate the ongoing challenges posed by tariffs. As the economic climate continues to evolve, those who can adapt quickly will likely emerge with a competitive edge.Implementation Challenges
Need for Agility
Strategies for Mitigation
Conclusion
