Deep Insights

A recent survey released by KPMG shows that amid ongoing uncertainty in trade and tariff policies, about 40% of U.S. companies plan to increase theirsupply chain agility investmentsover the next year. The survey, conducted by one of the Big Four accounting firms, aims to understand the strategic priorities of U.S. corporate executives.

The survey found that 48% of companies said they are actively modeling and deploying tariff mitigation strategies. Meanwhile, 41% of surveyed companies reported that they have deployed artificial intelligence (AI) to manage and optimize trade compliance processes.

Tim Walsh, KPMG U.S. Chair and CEO, said in a press release: "Policy uncertainty is the norm, and agility is the only way to stay ahead of it. CEOs are acutely aware that customers are currently very price-sensitive. Leading companies are not only re-examining their supply chains but also investing in technology and AI to gain every possible advantage."

These findings come as the U.S. Supreme Court recently issued a ruling overturning the broad tariffs imposed by the Trump administration last year under the International Emergency Economic Powers Act (IEEPA), but the ruling has also raised new questions for businesses.

Brian Higgins, KPMG U.S. Advisory Leader for Industrial Manufacturing, said in an email: "What we are seeing now is uncertainty re-entering the system at the worst possible time. Companies are again relying more on price increases to protect margins, delaying capital investments, and hesitating on employment or reshoring. Even as production returns, it is increasingly automated rather than labor-intensive."

Last month, the Supreme Court ruled that PresidentDonald Trump lacked the authorityto impose broad tariffs under the 1977 International Emergency Economic Powers Act. Since then, the administration has shifted to advancing tariff measures under other trade regulations with clearer legal precedent.

Meanwhile, earlier this month, the U.S. Court of International Trade stated that companies that have paid these now-defunct tariffs areentitled to refunds. However, the process and timeline for the government to issue refunds remain unclear.

Trade law analysts point out that the Supreme Court's ruling has made an already complex cross-border supply chain management environment even more complicated. Analysis from global law firm Baker McKenzie notes that the ruling removed a key legal mechanism for imposing tariffs, forcing the government to consider alternative authorities and leaving businesses facinga period of uncertaintyas the government decides how to proceed. The firm noted that this shift could reshape U.S. trade enforcement strategies and complicate planning for importers.

Lawyers at Baker McKenzie stated: "Although the Supreme Court's ruling invalidates tariffs based on IEEPA, significant questions remain unresolved."

Despite the uncertainty, KPMG's research shows that CEOs generally remain confident in their companies' growth prospects. More than 80% of CEOs are optimistic about their organizations' outlook, but confidence in the overall economy is more cautious, reflecting prudence amid geopolitical and trade tensions.

More than half (52%) of CEOs cited uncertainty in areas such as tariffs, interest rates, and regulation as the top pressure driving their short-term decisions.

Higgins said: "For much of the past year, companies had begun to adapt to what they considered the new normal on tariffs. Margins were stabilizing, price increases were more moderate, and there was cautious optimism that capital investment might resume. But recent court rulings and policy shifts have disrupted that progress."