Tariff volatility has pushed brands, retailers and suppliers into unusually frequent talks, with procurement teams renegotiating contracts at a pace Infinity Loop says is far beyond normal. Nithin Mummaneni, the company’s chief executive, said negotiations have risen as much as sevenfold over the past four months compared with any other four-month stretch the platform has tracked, as businesses try to absorb new costs without tearing up longstanding supply relationships.
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pattern reflects a broader shift in how procurement is being managed. According to EY, many companies are now building tariff-specific data rooms, strengthening supplier collaboration and localising parts of their sourcing network to cope with uncertainty. KPMG has similarly said firms are reworking supplier contracts, distribution routes and the end-to-end movement of goods as tariff policy continues to change.
For many companies, the old model of fixed pricing and set expiry dates is giving way to something far more fluid. Mummaneni said tariffs are creating unpredictability that is often not covered in commercial agreements, leaving companies exposed both financially and in terms of lead times. In practice, that means assortment, order volumes, pricing and delivery schedules are all being revisited while buyers and suppliers look for ways to split the burden.
The pressure is not falling evenly. Larger retailers generally have more bargaining power and can often secure concessions, while mid-sized buyers may face more resistance from manufacturers asked to absorb extra tariff costs. Mummaneni said suppliers are becoming more selective, choosing which disputes are worth pursuing rather than applying the same response across every customer relationship.
That caution extends to sourcing strategy itself. Although companies have spent years broadening supplier bases, Mummaneni said today’s dominant concern is risk management. Many firms are staying with established suppliers, particularly those they trust most on quality, consistency and delivery, while postponing major shifts until the tariff picture becomes clearer.
EY has argued that many organisations are responding by stress-testing supply chains, improving inventory buffers and preparing for further policy changes. Thomson Reuters has also noted that tariffs are weighing on manufacturer continuity, customs compliance and forecasting across global networks. In that context, companies appear less willing to chase lower prices alone and more focused on preserving reliability, even if it means accepting some margin pressure in the short term.
The result is a sourcing environment in which contracts are no longer treated as static documents. Instead, as Mummaneni described it, they are becoming ongoing commercial relationships that can adjust to tariff shocks, with businesses seeking either shared cost absorption or temporary pass-through to customers. For now, the bigger strategic decisions may be on hold, but the negotiations themselves show how deeply tariff uncertainty is reshaping trade relationships across industries.
Source: Noah Wire Services
