Since the Trump Administration’s declaration of “Liberation Day,” businesses have been racing to shield themselves from the financial strain and impact caused by new tariffs.

The previous terms of the 90-day pause meant a 145% tariff on Chinese goods and a universal 10% tariff, which sent shockwaves through global markets and supply chains. In April 2025, we conducted stress testing to assess the financial impact of new tariffs.

Now, with the current tariff levels reduced to a 30% tariff on Chinese goods and a continued 10% universal tariff, we’ve updated our analysis to reflect what businesses are experiencing today, and what they should brace for next.

The following analysis assumed that companies increased their prices to cover half the cost of tariffs. Here is what we found:

Universal 10% Tariff + 30% Tariff on Chinese Goods

We assessed the impact of tariffs on U.S. companies based on where their global supply chains are located.

Steep Increase in Supplier Risk

• High-risk and very high-risk public companies increased by 24%.
• Private companies saw an 48% increase in high-risk classification.

Hardest Hit Industries

While financial health declined across all industry sectors, the impact of tariffs varied by sectors.  Here are 10 of the sectors with the largest decline in average FHR.

Reciprocal Tariffs

The 90-day pause is nearing its end. If reciprocal tariffs are put back in place after the 90-day pause, the situation will become even more dire. Our stress testing reveals just how severe the consequences could be, even when companies increase their prices to cover half the cost of tariffs:

Sharp Rise in Supplier Risk‍

• High-risk and very high-risk public companies jumped by 56%.
• Private companies showed a staggering 108% increase in high-risk classification.

Hardest-Hit Industries

With the reciprocal tariffs, the decline in the average FHR by industry sector is even more severe, including two sectors where the average FHR for both public and private companies is High Risk

The situation is ever evolving, but as it stands, tariffs are not going anywhere. The 90-day pause deadline is approaching, which means businesses will need to develop strategies quickly to ensure their supply chains can withstand tariff price shocks.

What Companies Should Be Doing Now

As we highlighted in our April 2025 article, companies with proactive risk management strategies (particularly those with insight into their suppliers' financial health) will be the best positioned to weather this storm. Those without that visibility risk serious disruptions and cost escalation. The rules still apply—to mitigate the risk of tariffs, companies should take the following steps:

• Deep Supplier Understanding: Conduct thorough financial health assessments of suppliers to understand their vulnerabilities and identify support opportunities. If critical suppliers are lacking a financial health assessment, fill that gap now. If financial health assessments are based on out-of-date financial statements, refresh them immediately.
• Collaborative Risk Assessment: Involve your supplier category managers in collaborative financial health discussions with key suppliers to assess risks and develop mitigation strategies.
• Innovative Support Mechanisms: Explore innovative financial support options to help suppliers navigate these difficult and uncertain times.

The end of the 90-day pause is fast approaching. Companies must act now to assess vulnerabilities and build resilience across their supply chains. Those who invest in supplier transparency and financial health today will be far better equipped to manage tomorrow’s volatility.

It’s not too late, but the window is closing. The time to prepare is now.