A new Allianz Trade Global Survey 2025 survey reveals that more than half of American companies plan to raise prices in response to Trump-era tariffs, while nearly 60% of firms globally expect negative impacts from U.S. trade policy. As geopolitical risks intensify, businesses are rethinking sourcing models, renegotiating contracts, and accelerating supply chain reconfiguration.
Companies Brace for Financial Fallout
According to a recent survey by Allianz, involving 4,500 companies across the U.S., China, the U.K., and Europe, more than half of U.S. firms plan to raise prices to offset the impact of ongoing U.S. tariffs. The findings reflect a growing consensus among businesses that tariff-related cost pressures are here to stay and must be priced in.
Globally, 59% of respondents expect U.S. trade policy to have negative consequences for their operations. For American firms especially, the default response is now cost pass-through. Only 22% of surveyed companies said they would absorb tariff costs; the rest plan to share the burden, first with consumers, and then upstream with suppliers via revised contract terms.
Financial risks are compounding. Nearly half of exporters anticipate rising non-payment risk over the next 6–12 months, particularly in manufacturing sectors, where cash flow constraints and delayed receivables are becoming more pronounced.
Sourcing Shifts and Contracts Hint at Reset
The Allianz report also confirms that strategic sourcing models are undergoing a notable shift. Thirty-four percent of companies have already relocated offshore production or suppliers to mitigate tariff exposure, and 59% plan to do the same. The urgency is most evident in the U.S., where 60% of companies have pre-identified alternative production destinations.
Many are also taking steps to contractually spread the risk. Roughly 60% of firms are now including pricing clauses in supplier agreements to account for foreign exchange fluctuations and tariff-related volatility—creating new terms that allow cost burdens to be dynamically shared with trading partners.
Despite the temporary pause on U.S.-China reciprocal tariffs, most executives view the current calm as fragile. The broader mood reflects a market increasingly shaped by geopolitical disruption, with 54% of firms citing political instability and trade tensions among the top three threats to their supply chain continuity.
Building Durable Cost Structures
The findings highlight a quiet but consequential shift in global supply chain governance. Instead of reactive tariff mitigation, firms are embedding resilience into the design of their sourcing, pricing, and commercial frameworks. This transition reflects a deeper recognition: trade policy volatility is not a temporary disruption, but a structural reality.
The constructive path forward lies not in waiting for policy certainty, but in engineering flexibility—contractually, geographically, and operationally. For supply chain leaders, this means rethinking long-term cost structures, rebalancing global exposure, and strengthening financial safeguards without undermining competitiveness. The challenge now is to manage unpredictability without over correcting, a balance that will define supply chain leadership in the years ahead.
