While channel sentiment around tariffs and trade policy returned to a decisive mindset in December as the year-end approached, mixed signals persisted across key indicators. Overall economic sentiment continued its downward trend for a third month, with “strong” views slipping to 38% and “weak” sentiment climbing to 39%. This shift underscores ongoing skepticism as ITSPs weigh economic conditions heading into the new year.
Forward-looking confidence improved slightly but remains divided. Optimism about the 12-month outlook rose to 47%, recovering from November’s low, yet pessimism also increased incrementally to 39%.
Sentiment on long-term tariff impacts remains split, with positive and negative views now both at 40%. The persistence of this deadlock over several months reflects a channel equally divided, but with strong faith in separate visions of the future of tariff impacts, as “neutral” sentiment has remained low since reporting began. Relatedly, outlooks on trade policy business impacts rebounded modestly, with positive sentiment climbing to 44%.
Operational responses to tariffs continued to evolve in December. Sixty-eight percent of ITSPs are passing on tariff costs to customers, either fully or partially, while those reporting no action yet drops to 10%. At the same time, decreased product revenue (50%) replaced customer purchasing cuts (36%) as the second most-cited negative impact after higher COGS pricing (58%). Hardware costs, customer pricing, and supply chain continuity remain the top areas of tariff pressure.
December’s trends reveal a channel continuing to navigate a complex and unsettled environment. While optimism regained some ground, the overall picture remains split, as ITSPs prepare for continued uncertainty in 2026.
GTIA Members: Read the December 2025 GTIA Economic Tracker on the Member Portal.
