
America in motion
How businesses can own their next move
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President Trump’s tariff strategy continues to introduce new waves of uncertainty for global businesses. As companies contemplate rising costs and the potential for operational disruption, tech leaders – especially CIOs and CTOs – are having to revisit their 2025 technology budgets, many of which were already set.
If you’re managing tech spend, it’s time to get ahead of the tariff ripple effects. Staying flexible, focused on value and ready to adapt will be key.
Technology leaders face four key areas of exposure:
Higher direct costs: New tariffs could raise prices on imported hardware, infrastructure and other tech components.
Supply chain disruptions: If US inventories run low, companies may face delays or struggle to find new suppliers.
Rising indirect costs: Cloud, software or IT service vendors may increase prices to offset their own rising costs.
Global shifts in tech spend: Shifting cost dynamics may prompt companies to redirect tech investments globally – especially if total cost of ownership in regions like the EU drops relative to that of the US.
There may also be opportunities for you to reduce or eliminate tariffs through US or global customs programs. With so much in play, now is the right time to plan your approach.
Also keep in mind: Other countries may respond with their own retaliatory tariffs on US exports, adding more uncertainty – and possibly affecting tech services as well. In particular, as EU regulators continue to ramp up their efforts to provide more oversight to the biggest tech companies, the Trump administration has said it might retaliate if US companies are targeted. Uncertainty is likely the norm for some time to come.
President Trump’s tariff strategy continues to introduce new waves of uncertainty for global businesses. As companies contemplate rising costs and the potential for operational disruption, tech leaders – especially CIOs and CTOs – are having to revisit their 2025 technology budgets, many of which were already set.
If you’re managing tech spend, it’s time to get ahead of the tariff ripple effects. Staying flexible, focused on value and ready to adapt will be key.
Technology leaders face four key areas of exposure:
Higher direct costs: New tariffs could raise prices on imported hardware, infrastructure and other tech components.
Supply chain disruptions: If US inventories run low, companies may face delays or struggle to find new suppliers.
Rising indirect costs: Cloud, software or IT service vendors may increase prices to offset their own rising costs.
Global shifts in tech spend: Shifting cost dynamics may prompt companies to redirect tech investments globally – especially if total cost of ownership in regions like the EU drops relative to that of the US.
There may also be opportunities for you to reduce or eliminate tariffs through US or global customs programs. With so much in play, now is the right time to plan your approach.
Also keep in mind: Other countries may respond with their own retaliatory tariffs on US exports, adding more uncertainty – and possibly affecting tech services as well. In particular, as EU regulators continue to ramp up their efforts to provide more oversight to the biggest tech companies, the Trump administration has said it might retaliate if US companies are targeted. Uncertainty is likely the norm for some time to come.
Now is the time to assess risks, opportunities and potential impacts, align on near-term responses, and build in flexibility and contingencies to navigate what’s ahead.
Bringing together the right team of leaders from your organization and key suppliers from the start can help you get a fuller picture, faster. Alignment from the start can aid in decision-making and a more coordinated response across the business.
Engage cross-functionally. Work with other leaders across the company to fully evaluate the impacts, consider interdependencies (e.g., tax, inventory) and develop solutions that make sense for the organization.
Talk to key suppliers. Discuss locking in pricing, expediting shipments or adjusting delivery timelines.
Loop in your C-suite early and often. Make sure leadership understands the challenges ahead and interdependencies with other parts of the organization so they can support your planned actions.
Conduct a focused risk assessment of your current technology investments and exposure points to identify areas of immediate vulnerability.
Inventory your tech/capex pipeline. Look at high-spend categories to pinpoint areas most exposed to supply chain or market disruptions.
Flag US-based deployments. Assess location-specific risks, particularly where timing or geopolitical factors may have an impact.
Analyze third- and nth-party dependencies. Look to uncover critical vendor exposure and potential cascading impacts.
Check your current equipment and open orders. Decide whether it makes sense to stockpile key items.
Examine your competitive landscape. Understand how competitors (and competitors’ offerings) may be impacted. Your operating model may allow for market opportunities.
Review customs opportunities. With the new US tariffs, there may be new opportunities to reduce or eliminate some through US or global customs programs.
As cost pressures and uncertainty rise, continuously reassess priorities and timing across your portfolio with your supply chain in mind. This is unlikely to be a static event; building out routine processes to reassess more often can help you find advantage.
Use this moment to rethink your exposure across your global footprint and supply chain. Given the level of forward-looking uncertainty, a review now can help catalyze long-term resilience against additional future shocks.
Reassess shipment and deployment models. This can help reduce geographic concentration risk.
Explore geographic hedging. Consider how adjusting your global footprint – across both talent and infrastructure – can help mitigate localized disruption.
Add cost flexibility wherever possible. Think licensing, cloud usage and service models.
Executives will want to sort through the president’s latest moves to get a sense of what may be next, what changes mean for their business, where to find opportunity and how to mitigate risk. At PwC, we’re working with CIOs, CTOs and the broader C-suite across industries to navigate these changes and shape strategic response, rather than simply react:
Prioritize tech investments and build in budgetary headroom with a Fit for Growth lens.
Build resilience into projects and operational programs.
Track evolving trade and policy shifts with industry insight.
Explore customs programs that could reduce, or potentially eliminate, some tariffs.
Use scenario-based tools to analyze data and interdependencies, quantify impact and inform decisions.