Tariffs challenge SMBs — SupplyChainXChange

Photo by Rikin Katyal on Unsplash

Nearly two-thirds of small and mid-sized businesses report being impacted by tariffs, according to Netstock’s 2025 Benchmark Report. Higher costs, sourcing shifts, and increased inventory holdings reflect continued volatility, though easing lead times hint at a modest rebound in supply chain stability. AI use and risk-sharing strategies are rising sharply.

Key Takeaways

  • Tariff pressures remain significant: About 64% of SMBs say their operations are affected by tariffs, with many paying more for inventory rather than cutting purchases.

  • Sourcing preferences shifting: Interest in domestic sourcing increased slightly, marking a subtle retreat from offshore supply dependence.

  • Inventory approaches are evolving: More SMBs are holding buffer stock and using shared-risk models such as vendor-managed inventory, as AI adoption in inventory management has more than doubled.

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