Trade policy uncertainty is forcing supply chain leaders into difficult choices across pricing, sourcing and inventory, according to a preview of RELEX Solutions’ third annual State of the Supply Chain report. The findings, drawn from a January survey of 514 retail, manufacturing, wholesale and supply chain leaders, show 86 percent have already felt the effects of tariffs or trade policy changes.
The responses, however, are far from uniform.
Pricing and sourcing shifts
More than half of respondents – 51 percent – have raised consumer prices to offset higher costs. That’s a notable jump from 2025, when 31 percent reported doing the same. Nearly a quarter have shifted sourcing away from countries directly affected by trade policy changes, and 18 percent have restructured supply chains or delayed investments.
Inflation remains the dominant strain. Thirty-four percent of leaders cite rising input costs as their single greatest supply chain pressure, ahead of tariff and geopolitical pressures at 17 percent and labor shortages at 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 and often with limited lead time,” said Laurence Brenig-Jones, VP of product strategy, RELEX Solutions. “Our data shows companies are already adjusting pricing, sourcing and inventory strategies in response to that uncertainty.”
A strategic split on inventory
The report reveals a divide in how companies are managing risk. Twenty-eight percent are building strategic stockpiles to protect product availability, while 27 percent are leaning back into lean inventory models to control costs. The two camps are essentially hedging against opposite problems – out-of-stocks on one side, cash flow and markdown exposure on the other.
That split mirrors findings from 2025, when 30 percent of manufacturing leaders kept inventories lean while 25 percent built safety stock amid inflation and recession concerns.
Retailers turn to promotions and private label
Among retailers specifically, 49 percent cite margin pressure as their biggest operational challenge. Nearly half – 47 percent – are increasing promotions to reach price-sensitive shoppers, and 28 percent say promotions are their primary lever for protecting performance. Twenty-five percent are expanding private label or value-focused product lines.
Manufacturers are taking a different approach. Forty-five percent report passing rising input costs to customers, 43 percent are adjusting pack sizes or stock-keeping units in response to price sensitivity, and 26 percent are diversifying their supplier base.
Resilience over stability
Companies appear to be accepting that volatility is the new baseline rather than a temporary disruption. Fifty-nine percent are strengthening logistics partnerships, 37 percent are expanding their supplier bases, and 28 percent are increasing safety stock. Half of respondents expect global disruption to remain the biggest challenge to supply chain performance over the next three years.
Despite the pressures, 77 percent describe themselves as optimistic or cautiously optimistic about the next 12 to 18 months – though only 20 percent say they are outright optimistic.
The full 2026 State of the Supply Chain report, which will include deeper analysis on technology adoption and AI investment priorities, is expected in late March.
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