100 days in: What’s next for business

PwC’s May 2025 Pulse Survey shows that the current levels of business volatility could stick around. While nearly half (48%) of the business executives surveyed expect today’s uncertainty to last less than a year, many anticipate it could extend through the next presidential election. Undergirding that lack of clarity are the mixed signals regarding consumer and business confidence, and the on-again, off-again trade policies coming from the administration. Potential tax changes and AI regulation are X-factors as well. (Our survey was conducted in the first week of May, before the US and China agreed to suspend tariffs for 90 days.) 

Yet despite the uncertainty, many executives are still looking ahead — nearly a third (32%) say they expect more opportunities in the next 12 months, even as 23% anticipate more challenges. And many executives are starting to lay the foundations for future opportunities. They’re looking at cost reductions (with 62% either taking initial steps or already beyond initial steps), adjusting financial forecasts and budgets (59%) and diversifying suppliers (58%).

They’re using a two-speed approach, making rapid tactical moves in the short term to manage volatility and mitigate the impact on their business, while planning coordinated long-term strategies to compete more effectively in the future.

At the same time, a sizable share (57%) say they’re missing opportunities because they can’t make decisions quickly enough. Their organizations often struggle with rigid decision-making and limited visibility into their performance, making it difficult to know where they stand or what actions to take.

In this environment of shifting policies, the real risk isn’t volatility — it’s inaction.

Here are some of our key findings.

• There’s little consensus about when conditions might stabilize. Nearly half of the business executives (48%) predict the current volatility will last less than a year, while roughly the same percentage say it will last longer.
• Business executives see opportunity amid the uncertainty. A third (32%) say there will be more opportunities 12 months from now, while 23% say there will be more challenges.
• Uncertainty and volatility are driving short-term strategy shifts. The No. 1 factor prompting strategic change over the next one to two years is US economic policy, with 48% ranking it in the top 3.
• And they’re pushing companies to act. The main areas where companies are taking action (either taking initial steps or already beyond initial steps) are implementing cost reductions (62%), adjusting financial forecasts and budgets (59%) and diversifying suppliers (58%).
• Tariff pressures are forcing hard choices. Two thirds (65%) of the executives say they’re renegotiating pricing with suppliers or plan to, and 60% are passing tariff-related costs on to customers or plan to.
• Some companies are struggling to keep pace. More than half of the executives (57%) say that they’re missing opportunities because they can’t make decisions quickly enough.

As tariffs drive up the cost of imported materials and intermediate goods, many companies are feeling the squeeze on margins. In response, 65% of business executives say they’re renegotiating pricing with suppliers, and 60% are passing tariff-related costs on to customers or have plans to do so. These steps make sense — many businesses can’t afford to absorb rising costs without putting profitability at risk. In fact, in our analysis, margin pressure ranks just behind cyber threats and macroeconomic uncertainty as a top risk for companies.   

But many companies are hitting the limits of their pricing power. Simply passing along price increases — especially without a clear explanation — risks alienating customers, particularly now as inflation cools and consumers in many sectors grow more price-sensitive.

More than half of our respondents say they have a plan — or have already acted — to increase sourcing from the US (62%) or other lower-tariff countries (58%). Nearly half (48%) are also exploring or implementing onshoring strategies. While the data doesn’t reflect the scale of these shifts, companies may be adjusting only a portion of their supply chain or focusing changes on demand-side retail operations in China. Three quarters (76%) of executives agree or strongly agree that they are reconsidering their company’s presence in China as part of a longer-term strategy. This doesn’t necessarily mean a full exit, as China is a significant market for many companies. Still, some are reevaluating exposure in areas like retail operations and production. A related perspective: 83% of executives say they’re adopting a more long-term US-focused business strategy, which also underscores an effort to de-risk and rebalance supply chains and market presence.

Industries with globally connected supply chains (industrial products, consumer markets, energy) are leading the charge on customs duty strategies, signaling a shift toward more proactive tariff management. Still, some consumer markets companies report having no plans in place, highlighting a potential blind spot in how they’re managing trade exposure.

What you can do

• Segment customers to understand their price sensitivity. A detailed view of how different groups perceive value, both in your offerings and those of your competitors, can help you identify which customers are likely to stay loyal and which ones might cut back or switch if they feel they’re not getting their money’s worth.
• Get smarter about customs and duty strategies. A strong tariff and customs duties strategy can help companies legally reduce costs by improving product classifications, sourcing decisions and packaging. Techniques like tariff engineering and transfer pricing can work together to lower both duty and tax exposure across global operations.

Even though many executives are taking proactive steps to adapt to the current environment, others are held back by indecision or are simply moving too slowly to keep pace. To highlight how some executives are differentiating themselves, we segmented risk leaders based on their level of confidence in advising the C-suite on geopolitical risks: 73% report being either mostly confident or very confident, while 27% report being either not confident or somewhat confident.

A consistent pattern emerged from the data. More confident risk leaders are taking concrete actions to manage risk, while those who are less confident are more likely to report inaction. For instance, more confident risk leaders are more likely to conduct supply chain risk assessments, perform scenario planning and hire external specialists to help assess risk exposure.

A lack of confidence usually has more to do with gaps in a company’s processes and structure than with individual leaders falling short. Teams can move a lot faster when there’s a clear decision-making setup, solid processes in place and everyone knows exactly who’s in charge of what. For example, empowering functions like supply chain or procurement to make tactical calls (e.g., adjusting sourcing in response to tariff changes) without waiting for cross-functional approvals can help avoid delays. But that structure works only if it’s backed by solid data. Trying to make calls without the right information doesn’t just slow you down, it increases the risk of getting it wrong.

 What you can do

• Delegate authority to the appropriate level. Not every decision needs to come from the top or be approved by leadership. Identify which calls can be made by frontline or functional leaders, and make sure the C-suite signs off on the structure and guardrails so those leaders have the clarity and support they need to move quickly and effectively.
• Evaluate your data. Confirm your data sources are accurate, continuously updated and tied to the risk and performance metrics that matter most. When unexpected events like regulatory shifts or supply chain disruptions arise, your models need dependable data to quickly assess the situation, evaluate options and guide smart, timely decisions.
• Strengthen your processes. Design processes that allow new information to flow quickly to the right people. Include clear, easy-to-interpret visualizations so decision-makers can quickly grasp what’s happening and take confident, informed action for both short-term and long-term decisions.
• Prioritize what matters most. You don’t have to address every issue at once. Use data and input from across the business to identify the most pressing risks or opportunities and focus resources to have the biggest impact.

To quote a Stoic philosopher, “The obstacle in the path becomes the path.” In today’s volatile environment, it can feel like uncertainty is standing in the way of defining a clear strategy and following through on it. But the opposite is playing out. Leading organizations are taking action and finding opportunities despite a lack of clarity. The bigger risk is missing the moment and waiting for conditions to stabilize — a wait that could be futile.

What’s required right now is a willingness among executives to act — informed by data, aware of risks and with a two-speed approach. In the short term, that entails tactical measures to identify shifts and mitigate the impact of sudden policy shifts. In the long term, it means more strategic measures to reposition the company to capitalize. In other words, companies act fast on what they know today and build flexibility for what comes next.

The last element to succeed right now? Confidence. As our results show, change is here and it’s unlikely to slow down anytime soon. Today offers the clearest opportunity to act decisively, before conditions shift again.

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Between May 1 and May 8, 2025, PwC surveyed 678 US executives, including CFOs and finance leaders (12%), tax leaders (10%), risk management leaders, including CROs, CAEs and CISOs (12%), CIOs, CTOs and technology leaders (13%), CHROs and human capital leaders (12%), COOs and operations leaders (12%), corporate board directors (9%), CMOs and marketing leaders (12%) and CEOs (7%). Respondents were from public and private companies in six industries: industrial products (29%), consumer markets (15%), financial services (20%), technology, media and telecom (15%), health industries (6%), energy and utilities (9%), and other (6%). The Pulse Survey is conducted on a periodic basis to track the changing sentiment and priorities of business executives.