Global research among senior business leaders reveals that tariff volatility has become a critical threat to business profitability, with 76% of companies already experiencing profit losses due to tariff impacts.
The study, conducted by Enable, the leading AI-driven rebate and pricing management platform, finds that 91% of businesses are concerned about tariff impacts over the next 12 months, with a third (33%) “extremely concerned.” With 34% of the average business’ cost base exposed to tariffs, this anxiety reflects a significant risk to profits.
The research exposes a dangerous gap between the speed of tariff changes and businesses’ ability to respond. While 84% of companies plan to increase prices to offset tariff impacts, 59% admit it takes weeks or months to implement price changes.
“With costs shifting unpredictably and 93% of businesses admitting their current pricing responsiveness risks further profit loss, pricing agility has become an essential survival skill,” says Andrew Butt, Founder and CEO of Enable. “The lag between tariff updates and implementing price changes creates a window where competitors with faster pricing capabilities can capture significant market advantage.”
The scale of planned business responses underscores the severity of the challenge. Beyond raising prices as their primary response to tariff pressures, 52% will reduce costs elsewhere, and 46% are considering scaling back or withdrawing from high-tariff markets entirely. Despite 96% viewing pricing as a strategic lever, 26% lack confidence in their organization’s pricing strategy.
Meanwhile, customer relationships add another layer of complexity, with 85% fearing customer sensitivity to tariff-related price changes and 94% of businesses concerned about negatively impacting relationships due to pricing changes.
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