U.S.-based industry executives are reacting quickly to fluctuating trade policies and rising input costs, but not fundamentally rethinking their supply chains, according to West Monroe, a business and technology consulting firm. In its Quarterly Supply Chain Poll of U.S.-based manufacturing, retail, and distribution executives from companies with at least $500 million in annual revenue, the firm concluded that senior leaders are making quick, flexible adjustments — what West Monroe characterized as a "tariff tap dance" — in order to stay afloat while policy shifts on tariffs, and pricing volatility create operational strain.
"Most companies are responding to trade pressures with surface-level, defensive moves in their supply chains — not full-scale reinvention,” said Jeremy Tancredi, a partner in West Monroe's supply chain practice and co-author of the poll, which was conducted June 11-15. “The reality is, their changes have had to be flexible enough to reverse if the policy shifts — because it has and probably will again."
Most respondents said they are making changes that can easily be undone, with 56% adjusting their product and sourcing mix, and 50% changing their transportation mix. Less popular was the tactic of passing along increased cost to customers (35%) or altering geographic presence (25%).
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According to the poll, tariffs jumped 12 points in impact from Q1 2025 to become the most-cited issue, overtaking cybersecurity. Cost of materials rose 6 points.
Meanwhile, supplier diversification has gained in urgency, the poll found. The number of leaders ranking it as their top priority nearly doubled to 14% — up three spots from Q1 2025 — reflecting the need for businesses to have more options. The top priority is now cost containment, tied with inventory management, at 20%.
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