Supply chain professionals deal with the flow of goods from factories to stores, and in this last year, tariffs imposed by the U.S. government have made that work much harder. These tariffs act like extra taxes on imported materials and products, raising prices for companies that rely on global suppliers. A recent survey by the Association for Supply Chain Management, known as ASCM, and CNBC highlights how these costs lead to layoffs and cut back on investments. Many in manufacturing, electronics, and consumer goods sectors report feeling the pinch most, as they juggle higher expenses for parts from countries like China.
About 65% of those surveyed said their supply chain costs rose by at least 10% to 15% due to the tariffs. These increases cover everything from raw materials to shipping and customs fees. Businesses in sectors such as automotive parts and household products often import components, so they absorb these hits directly. The survey, ASCM’s monthly report conducted from December 15th to January 7th, with over 220 leaders, shows this as a major shock to budgets. Even firms that pass some costs to customers struggle, as demand can drop when prices climb.
The same group of professionals noted a doubling in layoffs, from 16% in April to 32% now. Companies cut jobs to offset the rising expenses, especially in roles tied to procurement and logistics. For example, firms handling imported baby products or electronics face new requirements for customs bonds, which tie up cash that could fund payroll. This creates a cycle: fewer workers mean slower operations, and supply chains in consumer goods slow further. ASCM leaders point out that these moves affect not just finances but people and long-term skills in the workforce.
Less money for new projects comes up often in the findings. Tariffs shorten planning windows, so companies focus on survival rather than growth. Over 34% reported cost jumps beyond 15%, forcing them to pause expansions or tech upgrades. In electronics and manufacturing supply chains, this means delayed factory improvements or supplier shifts. The uncertainty around a Supreme Court case on the International Emergency Economic Powers Act, or IEEPA, adds to the caution, as firms wait for rulings on tariff legality. Even potential refunds would not cover lost time or extra admin work.
National job growth hit lows not seen since early 2000s, with unemployment up slightly to around 4.4% by late 2025. Supply chain managers express mixed views: 38% negative on the economy, 56% worry about recession starting mid-year. Global forecasts predict slower trade growth at 2.2% for 2026, down from 3.8% prior. Businesses describe tariffs as a tax that disrupts stability, making it hard to retrain staff or predict prices. Administrative burdens, like tracking codes and bonds, eat time that could go to strategy.
Many doubt refunds would help much, even if courts rule in their favor. Costs for loans, bonds, and overtime already happened, and some expenses fall outside refund rules. For instance, collateral for bonds locks capital at 10% of duties over 12 months. Supply chains in sectors like steel or autos face ongoing uncertainty, as new tariffs loom. Companies shift to crisis mode, lacking clear pricing for future deals. This setup hampers re-industrialization efforts too.cnbc​
The pressures from these tariffs reveal deep challenges in global trade networks. Firms adapt by seeking domestic sources or exemptions, but change takes time. Supply chain leaders call for steady policies to let planning resume. Economic views split, with some neutral at 27% and others hopeful at 35%.Â
