Half of US Firms Have Changed Suppliers, Explored New Markets Due to Tariff Pressures

President Donald Trump’s worldwide trade agenda has already reshaped the way companies source goods and structure contracts, with almost half of American companies saying they have changed suppliers in the wake of shifting tariff policies as a means of reducing costs or mitigating risks.

That’s according to contract lifecycle management (CLM) firm Agiloft’s recent survey of 600 legal, procurement, information technology and finance professionals across the United States and the United Kingdom about the new costs and concerns they’re incurring due to trade policy churn.

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In the U.S., A little over half (51 percent) said that tariff pressures have pushed them to forge new supplier relationships in markets or regions they haven’t done business in before. And with so much volatility in trade policy, 92 percent are now including tariff-related clauses in their agreements with suppliers and vendors.

“This highlights not just change but strategic risk, as companies navigate new territories with limited prior relationship history,” analysts wrote. What’s more, 49 percent have given up on existing partnerships due to the double-digit tariff increases on trade partners, which Agiloft said suggests that American firms that are particularly exposed to international sourcing are shaking up sourcing significantly.

Some of firms’ biggest worries include costs, compliance and customers. Almost half (49 percent) of groups surveyed said the cost of imported materials and products was the “primary threat” to their businesses, while 47 percent said they worried about how tariffs could impact pricing, and therefore, customer appetites. Last week, the Yale Budget Lab wrote that the new tariff regime could inflame existing constraints on consumer spending and push 875,000 Americans into poverty.

The third most prominent source of anxiety was regulatory uncertainty and compliance challenges at 44 percent, followed by reduced profit margins at 42 percent.

“Supply chain recalibration appears to be a common response to shifting tariff regimes, creating cascading effects on contract renegotiations and management,” Agiloft analysts wrote. “This sort of disruption can be deeply damaging to buyers and sellers alike: planning ahead for turbulence, by clearly outlining the responsibilities for each party in standard agreement templates, is becoming fundamental to building resilient supply chains for the foreseeable future.”

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The group’s survey analysis showed that tariffs are reshaping both cost structures and customer strategies across both the U.S. and the U.K. Agiloft wrote that companies are very focused on the downstream financial pressures that tariffs create, since higher input costs drive up prices. Navigating ever-shifting regulatory frameworks “compounds the challenge.”

Nearly 46 percent of American respondents said they’re revising their contract terms more frequently because regulations continue to change. About 36 percent said contracts with suppliers or clients are being renegotiated more often, and around 40 percent said they’re adding new contract clauses or provisions to guard against political risks. Because of this, 40 percent said contract negotiations are causing slowdowns in operations—and time is money.

They’re also shelling out more capital to manage these contract renegotiations and ensure compliance with new trade laws. About 73 percent of respondents agreed or strongly agreed that tariffs have increased the complexity of contract negotiations, while 71 percent reported higher costs in contract management that they credited directly to the ongoing tariff saga.

More than 54 percent of those surveyed said the focus on compliance and legal review processes has increased, and more than 42 percent said they’re expanding risk management strategies in response to trade uncertainties.

A majority (53 percent) of American firms said following the tariff updates and their implications is a top challenge, suggesting that keeping up with the changes is becoming burdensome to businesses, while 48 percent said the same about the sheer number of contracts that need to be reviewed and renegotiated because of the fast-moving policy changes.

“Trade and political uncertainty are reshaping how companies manage contracts, forcing teams from Legal to Finance to Procurement to juggle frequent contract revisions, longer approval cycles, and new clauses designed to absorb risk,” analysts wrote. “Behind the numbers are people making judgment calls, balancing compliance with business needs, and finding creative ways to keep global operations moving.”

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