Pricing under pressure: Executive insights on navigating tariff impacts

Tariff policy is upending pricing strategies across US industries. New import duties announced by the Trump administration in April 2025 and now taking effect are impacting a wide swath of products.¹ For example, a recently negotiated trade agreement with the European Union introduces an additional 15 percent tariff on most imported goods.²

To understand how companies are responding, KPMG LLP surveyed C-suite executives across sectors in May 2025.³ The results reveal a range of pricing strategies, with some sectors opting for broad-based price increases and others taking a more cautious and analytical approach.

Overall, respondents said that they are taking steps to determine the pricing effects of a tariff change, with the top choices among suggested responses being “modeling different scenarios” (58 percent) and “identifying key objectives to pursue through pricing changes” (56 percent). Moreover, respondents indicated they were inclined to consider some level of price increases, with only 20 percent saying they weren’t planning further price changes, while 30 percent said they were considering price increases of up to 5 percent.

The automotive industry stands out for its clear commitment to maintaining margins amid tariff disruptions. While many sectors are focused on profitability, 78 percent of auto executives said they are prioritizing margin neutrality—by far the highest share among all sectors surveyed. Only 19 percent of automotive firms are actively working to expand margins, in stark contrast to 54 percent in the energy, natural resources, and chemicals (ENRC) sector, and 42 percent of respondents overall.

Automotive firms are also leading the way in price adjustments. Two thirds (67 percent) of surveyed auto executives reported making significant price changes to account for new tariffs—well above the 38 percent cross-industry average. Additionally, 70 percent of automotive respondents said their companies have implemented broad price increases across all products, compared with just 35 percent of companies overall.

Retailers are nearly as focused on maintaining margin neutrality, with 60 percent saying that’s their pricing goal. But they are also leaning into price increases: 43 percent of retail executives reported raising prices by 6 percent to 15 percent. That’s well above the 28 percent industry average, and far more aggressive than the 18 percent of technology sector respondents who reported similar hikes. This combination of strategic price adjustments and margin discipline suggests that retail leaders are looking to carefully balance competitiveness with cost recovery.

Industrial manufacturers are taking a highly analytical approach. Nearly 65 percent of surveyed executives in the sector said they are breaking down costs at the SKU level to better understand tariff impacts—a sharp contrast to the 42 percent average across all other industries. This level of granularity enables precise, data-driven pricing decisions and highlights the sector’s focus on operational rigor during periods of uncertainty.

While other sectors move aggressively on pricing, the technology industry is adopting a more reserved stance. Among tech industry respondents, 40 percent said they plan to make no pricing changes over the next six months, more than double the 19 percent industry average. In addition, just 8 percent of technology sector respondents reported reducing service costs, compared to 15 percent of companies overall. The findings suggest a “wait-and-see” approach grounded in market confidence and a desire to avoid premature moves.

Companies in the ENRC sector appear more willing than others to push through substantial price increases. More than one third (35 percent) are planning hikes of 16 percent to 25 percent, more than double the 16 percent of executives in other industries considering similar moves. Interestingly, ENRC firms also seem less concerned with competitive benchmarking: Only 13 percent said they were worried about how peers in their industry are responding to tariffs, compared with over one third of firms across other sectors.

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The emergence of new—and still evolving—tariff structures is prompting a wide range of strategic responses. From the automotive industry’s disciplined margin focus to the retail sector’s agile adjustments and the tech industry’s steady hand, organizations are reshaping pricing frameworks to protect profitability and competitiveness. As tariff dynamics continue to shift, leveraging sector-specific insights will be essential to building resilient, forward-looking pricing strategies that can support long-term growth in a turbulent global trade environment.