Businesses Need Proactive Strategies Beyond Cost Absorption, Says Gartner
U.S. companies navigating a volatile tariff landscape must take a strategic, forward-thinking approach rather than simply absorbing costs or passing them on to customers, according to a new report from Gartner, Supply Chain Disruption: Key Strategies for CSCOs to Respond.
Gartner advises chief supply chain officers (CSCOs) to integrate potential tariff escalations and de-escalations into their scenario planning, warning that reacting too early or too late carries significant risk. “CSCOs who anticipate that current tariff volatility will persist for years, rather than months, should also recognize that their business operations will not emerge successful by remaining static or purely on the defensive,” said Brian Whitlock, senior research director at Gartner’s Supply Chain practice.
Five Strategic Approaches to Tariff Challenges
Gartner identifies five key pathways for businesses to navigate ongoing tariff fluctuations and even turn them into opportunities. The first approach is to retire certain products or even entire business lines that may no longer be viable under the new tariff regime. If the cost of adapting is too high, companies must be prepared to phase out underperforming products. The second is renovation, where tariff changes may accelerate necessary product modifications. Supply chain leaders must assess whether absorbing or passing on costs is viable, while also considering the product’s strategic importance.
Rebalancing is another crucial approach, as initial tariff impacts may not be permanent. Companies must plan for policy shifts and competitive reactions while ensuring their demand planning reflects ongoing uncertainty. Reinventing business operations is also an option, as firms should explore investing in markets unaffected by tariffs or repurposing existing facilities to align with shifting geopolitical incentives. Lastly, reinvigoration can provide a competitive edge, where businesses find opportunities to expand domestic manufacturing, lower prices to capture market share, or leverage existing strengths to gain an advantage.
A Long-Term, Adaptive Approach is Essential
Gartner urges CSCOs to recognize tariff uncertainty as a multi-year challenge rather than a short-term disruption. “Enterprises should recognize tariff volatility as a multiyear, dynamic event,” said Suzie Petrusic, senior director analyst at Gartner’s Supply Chain practice. Companies that continuously refine their operations and investment strategies can position themselves as stronger players in a shifting global trade environment.
The current tariff landscape is more than just a cost-management problem—it’s a catalyst for rethinking supply chain strategies at a fundamental level. Businesses that treat tariffs as an evolving reality rather than a temporary obstacle will be better positioned to leverage new market dynamics. This means proactively reevaluating supplier networks, nearshoring where possible, and investing in digital tools to increase agility and resilience. The most successful CSCOs will not just react to policy changes but anticipate them, using data-driven insights to stay ahead of competitors. Waiting for stability is no longer an option; those who act decisively now will be shaping the next era of global trade.
