“CFOs are strategically responding to new tariffs, focusing on cost management and supply-chain adjustments to mitigate the financial impacts,” says Alexander Bant, chief of research in the Gartner Finance practice. “While a majority of CFOs are not expecting their organizations to absorb most tariff-related costs,  some do [expect to shoulder a significant portion of the burden], likely indicating varying levels of price sensitivity among customers and suppliers for specific organizations.”
 
For the majority of participating companies, this means customers will see higher prices. Thirty percent of respondents are planning to pass more than 90 percent of tariff costs on to customers. Nearly as many (29%) intend to pass on 10 percent or less of their cost increase, but the average expected pass-through to customers across all respondents is about 73 percent of the tariff impact.
 
“CFOs are exploring various strategies to minimize the short-term impact of tariffs, including revisiting Harmonized Tariff Schedule (HTS) classifications, leveraging tariff exemptions and free trade areas, and optimizing transactional structures to lower the dutiable value of imports,” says Bant. “Despite these efforts, 45 percent of CFOs have no immediate plans for tax and duty compliance adjustments, potentially overlooking quick wins.”
 
When the survey was conducted in March, CFOs were busy updating financial risk assessments, enhancing forecasting and scenario planning capabilities, and adjusting pricing strategies. They were also evaluating their cost structure and transfer pricing strategies, as well as collaborating with supply-chain managers to update risk assessments, explore alternative sourcing strategies, and renegotiate supplier contracts.