Chief financial officers are re-evaluating their supply chains ahead of incoming tariffs and say they will pass the majority of costs onto customers, a survey has found.

Businesses plan to pass through 73 per cent of the tariff cost onto consumers on average, a Gartner survey of North American chief financial officers has found.

“CFOs are strategically responding to new tariffs, focusing on cost management and supply chain adjustments to mitigate the financial impacts,” Alexander Bant, chief of research in the Gartner Finance practice, said.

“While a majority of CFOs are not expecting their organisations to absorb most tariff related costs, some do, likely indicating varying levels of price sensitivity among customers and suppliers for specific organisations.”

With over half (59 per cent) planning to absorb less than 10 per cent of tariff costs into their own cost bases, customers were likely to see higher prices in response to tariff policies.

Almost a third of CFOs (30 per cent) anticipated that they would pass on 91 to 100 per cent of the tariff costs directly to customers, while 29 per cent said they would aim to pass under 10 per cent of the costs on.

Gartner’s survey also found that many (45 per cent) CFOs were overlooking tax and duty minimisation strategies, which Gartner said could deliver ”quick wins”.

These strategies could include leveraging tariff exemptions and free trade areas to avoid the tariffs, lowering dutiable value on imports through transactional structures, and optimising Harmonized Tariff Schedule (HTS) classifications to secure the lowest legal tariff rates.

The tariffs are also disrupting supply chains, leading CFOs to explore alternative sourcing strategies, undertake risk assessments and renegotiate supplier contracts. Almost half (48 per cent) are working on alternative component and raw material sourcing, while 41 per cent are reevaluating the design of their supply chains.

Just over half of CFOs (54 per cent) anticipated minimal opportunities for cost-sharing tariffs with suppliers.

Businesses have been using data and scenario plans to inform their response strategies as the rapidly evolving geopolitical environment has thrown fresh challenges at them.

Over half (53 per cent) said they plan to conduct a risk assessment of existing and anticipated tariff impacts, 52 per cent said they will enhance their financial forecasting and scenario planning capabilities, and 50 per cent plan to adjust pricing strategies.

“CFOs are leveraging data and benchmarks to calibrate their tariff response strategies effectively,” Bant said.

“Continuous updates to scenario plans are essential as the trade environment evolves, ensuring organisations remain resilient and competitive.”