How CFOs are responding to tariffs: scenario analysis, supply chains and more

If tariffs remain in place, only 28% of CFOs indicate that they will absorb all associated costs. The majority, however, plan to pass on at least some of these to customers. 

The right pricing decisions depend on a web of economic factors, including what your competitors do, how your customers will respond to price increases, and the scope a business has for margin erosion.

Where possible, price increases should be strategically applied only to the specific products or customer segments that are well positioned to absorb them.  

The finance teams that are able to model a range of scenarios to define their strategy, alongside market testing and customer polling, will be well positioned to identify where adjustments will have the least resistance, and where profit margins are most vulnerable. 

1. Revisiting supply chains 

Laura Gardner, ESG and sustainability reporting

Supply chain nearshoring and diversification have unsurprisingly emerged as key approaches to reduce dependency on single markets, mitigate risks, and enhance operational resilience. To support these efforts, finance leaders need to collaborate closely with logistics, legal, and commercial teams to identify key dependencies, assess alternative sourcing options, and model different scenarios with speed and flexibility. 

However, while most CFOs recognise the strategic value of making supply chain changes, only 38% report having a complete understanding of their supply chain beyond its financial implications. 

This isn't surprising. Understanding and mapping out a business' full value chain is a complex, time-consuming task, even for large organisations with dedicated procurement teams.  

However, investing in a more detailed understanding of the supply chain now will bring multiple benefits. 

With new sustainability reporting regulations such as the Corporate Sustainability Reporting Directive (CSRD) and IFRS Sustainability Disclosure Standards set to impact UK businesses, it will help with preparing the organisation for incoming regulations, whist also helping strengthen your position for future investment, risk management, and competitive advantage. 

2. M&A opportunities

Peter Terry, Head of Private Equity

CFOs will be expected to play a proactive role in identifying where trade dynamics create market dislocation or offer opportunities to consolidate.

For some, this will mean acquiring distressed competitors facing tariff-related financial strain, turning industry volatility into an avenue for strengthening market positioning. Others will be exploring entry into protected geographies where competitors face pricing barriers.

Beyond immediate expansion, M&A activity in this environment will need to be carefully assessed, factoring in regulatory compliance, post-merger integration complexities, and long-term tariff exposure. CFOs who can support the business to navigate these challenges will be well-positioned to drive sustainable growth despite ongoing trade uncertainty.

3. Expanding into new markets

Unsurprisingly, many multinational businesses will be looking to adopt a more cautious approach when looking at expanding into new markets and shift their focus away from the US, in search of alternative regions with strong demand potential and lower risk exposure.  

Given the current climate, Southeast Asia, India, Africa, Latin America and Eastern Europe are some of the markets which offer an attractive alternative, due to factors such as growth potential, emerging consumer demand, and favourable economic conditions. These markets are seen as promising avenues for growth, driven by evolving consumer preferences and technological advancements.