CFOs are feeling pretty generous in sharing their newfound tariff-fueled costs with others.
President Donald Trump wasted little time enacting, then delaying, then enacting tariffs in the first months of his second term. Nearly three-fifths of CFOs said they planned to absorb 10% or less of the tariffs within their own cost base, a new Gartner poll of 192 finance leaders 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 Gartner’s finance practice, said in a news release. “While a majority of CFOs are not expecting their organizations to absorb most tariff related costs, some do, likely indicating varying levels of price sensitivity among customers and suppliers for specific organizations.”
Among the 41% of CFOs who said they would absorb 11% or more of the tariffs’ impacts, “the average expectation is to absorb 49%” in their cost base, according to the release. Only one in 10 respondents are taking one for the team and plan to absorb 91% or more of the tariffs in their cost base.
So, where’s it all going? According to the survey, organizations will pass about 73% of tariff costs on to customers. Three in 10 said they’d pass nearly all (91% or more) of the cost to customers.
Click here for more on how CFOs plan on dealing with tariff costs.—AZ
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