Enable Report Reveals Three-Quarters of US Businesses Have Already Lost Profit Due To Tariffs

Business Wire

01-08-2025

SAN FRANCISCO--(BUSINESS WIRE)--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.
"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."
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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.
The research reveals that traditional pricing approaches are inadequate for today's volatile trade landscape. Recognition of these limitations is driving significant investment in pricing capabilities, with the study identifying systems limitations as the second biggest barrier to pricing agility after customer pushback. 80% of businesses expect to invest in new pricing tools within the next 12 months, while 79% have already reviewed or updated their pricing processes due to market volatility.
Andrew Butt adds, 'As trade tensions show no signs of abating, the research highlights that building pricing resilience has become an urgent strategic priority. Organizations that can rapidly assess tariff impacts, model response scenarios, and execute changes will be best positioned to protect margins and establish a competitive market advantage.'
Earlier this year, Enable launched its Tariff Price Planner, a new application which allows businesses to model the impact of tariff scenarios in real time, helping them to navigate shifting trade policies.
All research conducted by Censuswide among 1,500 senior business leaders with pricing responsibility across retail, FMCG, manufacturing, and wholesale distribution in the US, UK and DACH region. The data was collected between 19 June and 30 June 2025. Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct which is based on the ESOMAR principles.
About Enable
Enable's AI-driven rebate platform and pricing management solution empowers manufacturers, distributors, and retailers to unlock new levels of profitability. By providing businesses with capabilities to optimize incentives, maximize the value of trading partnerships, gain precise margin visibility, and deploy complex pricing strategies at lightning-fast speed, Enable transforms rebates and pricing into strategic tools for growth.