Tariffs Force Firms to Rethink Technology as a Survival Tool

• Goods firms and mid-sized companies ($100M-$400M revenue) face the sharpest impact, with product leaders twice as likely as CFOs to cite tariffs as a financial drag due to frontline exposure to sourcing and logistics challenges
• Nine in 10 B2C goods firms report macroeconomic conditions are cutting into demand, limiting ability to raise prices and offset tariff costs in competitive, price-sensitive markets
• While 60% of firms report tariff uncertainty has constrained AI and automation funding, two-thirds are simultaneously investing in AI for immediate supply-chain optimization, with 82% of goods firms using AI to manage tariff pressure

Summary

Key Findings:

Tariffs have escalated from a background risk to a critical operational challenge, creating "peak uncertainty" for companies as of January 2026. Nearly half of product leaders at goods firms report tariffs are significantly negative for their finances, with 88% expecting supply-chain reconfiguration.

Major Impacts:

• Cost and Supply Concerns: Seven in 10 firms anticipate higher costs and customer demand issues, while supply-chain disruptions create delays and shortages
• Demand Pressures: 90% of B2C goods firms report macroeconomic conditions reducing demand, limiting pricing flexibility in competitive markets
• Uneven Effects: Goods-based companies are hit hardest—product leaders are twice as likely as CFOs to cite financial strain. Mid-sized firms ($100M-$400M revenue) face greater constraints than larger competitors due to limited pricing power

Corporate Response Strategies:

Companies are employing five key tactics: renegotiating supplier terms, reshuffling workflows, cutting discretionary spending, adjusting product portfolios, and cautiously implementing selective price increases.

Technology Pivot:

Over half of product leaders report shifting from long-term tech initiatives to short-term operational fixes. While 60% cite constrained AI/automation funding due to tariff uncertainty, two-thirds are simultaneously investing in AI-driven supply-chain optimization—particularly goods firms (82%). Technology's role has transformed from growth engine to efficiency tool focused on managing volatility and controlling costs.

Market Implications:

The research reveals a fundamental strategic recalibration across sectors, with firms prioritizing immediate survival over transformational growth. This pragmatic approach signals continued market volatility and margin pressure, particularly affecting mid-sized goods manufacturers with limited flexibility.