Pricing agility in focus: US executives rethink strategies amid ongoing tariffs
New survey reveals evolving strategies and sharper challenges for exporters
KPMG LLP recently surveyed senior executives across major US sectors—including retail, consumer goods, technology, natural resources, oil and gas, chemicals, life sciences, healthcare, and automotive—to understand how organizations are responding to ongoing tariff pressures.1 This survey builds on our May survey, allowing us to track how strategies and sentiment have shifted over the past several months.
Among respondents, 61 percent reported adjusting export pricing in response to recent tariff changes. This approach remains the most common lever for managing demand shifts in US exports, consistent with the May survey. All sectors are aligned with this strategy, underscoring its centrality in tariff mitigation.
A notable change since May is the increased adoption of dynamic pricing models. Among respondents, 40 percent said they have adopted dynamic pricing in contracts to mitigate tariff impacts, with natural resources organizations leading at 70 percent. This marks a clear shift from earlier in the year, when fewer organizations reported such agility in pricing mechanisms.
Pricing strategies adopted in response to tariff impacts - May vs September survey results
Executives are telling us that dynamic pricing and AI-driven modeling are no longer optional—they’re now essential tools for navigating tariff volatility and protecting margins.
Sudipto Banerjee
Principal Advisory, Performance Transformation, KPMG US
Adjusting pricing or cost structures to protect profit margins remains the second most selected lever, chosen by 58 percent of organizations. Retail stands out, with 83 percent of respondents leaning on pricing shifts. For next steps, 44 percent of organizations plan further pricing adjustments, with retail (77 percent) and consumer goods (67 percent) most focused on this strategy. Compared to May, these sectors now show heightened urgency, likely reflecting ongoing volatility and consumer sensitivity.
Managing customer reactions to price changes remains a challenge. In September, 36 percent of respondents cited customer pushback as a key issue, with over half of retail and consumer goods executives echoing this sentiment. This is up from 29 percent in May, suggesting that price sensitivity is growing as tariff-related adjustments become more visible to end customers.
Nearly half (49 percent) of respondents now use artificial intelligence (AI) for pricing and cost modeling, up from 41 percent in May. Adoption is strongest in consumer goods (63 percent) and technology (60 percent), indicating a trend toward more sophisticated, data-driven approaches to pricing under pressure.
The latest survey highlights a nuanced approach to margin management: 47 percent of respondents are changing prices to reach margin neutrality or breakeven, while 43 percent seek to increase margins. Notably, 33 percent of consumer goods executives selected consumer exclusivity as a major pricing goal, compared to 17 percent overall. In technology, one in three plan to change their business model—a significant jump from May’s 19 percent.
Organizations continue to balance cost recovery and customer retention. Two-thirds (66 percent) passed on up to 50 percent of tariff costs to customers, while only 9 percent absorbed all costs internally. Natural resources (93 percent) and oil and gas and chemicals (90 percent) are most likely to pass on costs, with retail and consumer goods more likely to pass on 51 to 100 percent of costs—a notable increase from May.
Among our respondents, 70 percent of organizations are prioritizing transfer pricing adjustments, up from 62 percent in May. This strategy is especially prevalent in oil and gas and chemicals (77 percent) and natural resources (87 percent), reflecting a growing focus on managing costs and profits across global entities.
Looking ahead, 42 percent of respondents plan price increases of up to 5 percent in the next six months, while 29 percent anticipate hikes between 6 and 15 percent. Oil and gas and chemicals (77 percent) and automotive (67 percent) lead with modest increases, while natural resources (53 percent) eye steeper hikes. Compared to May, more organizations are planning for higher price adjustments, signaling persistent tariff pressures.
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As tariff pressures evolve, US executives are doubling down on pricing agility and advanced analytics. The shift toward dynamic pricing and AI-driven modeling is not just a reaction—it’s a strategic imperative for organizations determined to protect margins and remain competitive in a volatile global market.
Footnotes
1. In September 2025, KPMG again surveyed 300 US-based senior executives in various functions about their views on the US proposed tariffs and their effect on their company and industry. Of the total surveyed executives, 30 represented the automotive industry.
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