**USA**: Amid rising tariffs and global trade tensions, mid-sized companies confront operational challenges. CFOs are strategising to navigate increased costs and supply chain disruptions, while embracing digital transformation. Despite uncertainty, many maintain a cautious optimism for improved conditions over the next year.
America’s mid-sized companies are currently navigating a challenging economic landscape characterised by escalating global trade tensions and the impact of rising tariffs. This situation has created a predicament for these firms, which often find themselves in a precarious position, caught between the financial resilience of multinational corporations and the flexibility of smaller businesses. The ongoing trade battles are prompting chief financial officers (CFOs) to urgently devise strategies to sustain their operations.
The increasing imposition of tariffs, particularly on Chinese imports, coupled with retaliatory tariffs from other trading partners, has left many mid-sized companies grappling with heightened costs and supply chain disruptions. As reported by PYMNTS, this complex backdrop compels CFOs to grapple with the significant disruptions that threaten their profitability, leading to a perfect storm of challenges—escalating duties, geopolitical strife, and logistical hurdles complicating the procurement landscape.
According to findings from The 2025 Certainty Project, many CFOs agree that the fluctuating tariff landscape will exacerbate existing challenges within their businesses. Approximately 60% of CFOs expect tariffs to contribute to economic uncertainty, a sentiment that escalates to 77% among those firms grappling with high levels of uncertainty. With this uncertainty, CFOs are keenly aware of the potential for supply shortages or delays, alongside surging costs associated with restructuring supply chains. The vast majority anticipate rising raw materials costs and express concern that retaliatory tariffs may complicate their export capabilities.
CFOs are tasked with not only managing immediate operational challenges but also assuming roles akin to economists and strategists, needing to adapt proactively to an evolving policy environment. The 2025 Certainty Project highlights that many mid-market firms are seeking to mitigate the impact of tariffs by exploring various strategies. Notably, negotiating with suppliers emerged as the most common approach, endorsed by 65% of CFOs. Additionally, many firms are considering increasing prices and diversifying their supplier base as viable options.
In light of uncertainty, companies are increasingly embracing digital transformation to enhance efficiency and minimise risks. By incorporating advanced technologies such as automation and AI-driven forecasting, these firms aim to improve their operational resilience. However, the shift towards digital solutions necessitates stringent “know your business” (KYB) protocols to ensure supplier legitimacy and manage fraud risks effectively.
The 2025 Certainty Project categorises firms into three distinct groups based on their levels of uncertainty: high uncertainty (22% of firms), medium uncertainty (42%), and low uncertainty (37%). Those classified as high-uncertainty firms appear particularly unprepared for the current economic realities, with only 8% having implemented contingency plans. In stark contrast, more than 90% of medium- and low-uncertainty firms report having undertaken some risk assessments.
Despite the hurdles presented by the current environment, a majority of CFOs (55%) maintain a belief that uncertainty across business operations will diminish over the next year. Conversely, only 3% predict that conditions will worsen, indicating a cautious sense of optimism among many in the mid-sized business sector.
Source: Noah Wire Services
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