Channel sentiment around tariffs and trade policy took a notably optimistic turn in October, even as some economic concerns linger. While weak sentiment about the current state of the U.S. economy rose to 39%—matching spring highs—confidence in future conditions remains strong. Also rising back to levels recorded earlier this year after a temporary drop in late summer, 54% of ITSPs expressed optimism about the economic outlook over the next 12 months. This suggests that short-term anxieties are not dampening long-term expectations.
Tariff-related sentiment continues to evolve in a positive direction. Optimistic sentiment on tariff impacts rebounded while negative outlook dropped to a new low, indicating a growing acceptance to current trade conditions. That optimism extends into the future, with sentiment about trade policy impacts over the next year reaching a new high.
Organizations are also becoming more decisive in their responses to tariffs. The percentage of ITSPs reporting a neutral stance dropped to a low, while those taking action—either by passing costs onto customers or absorbing them—rose. A record 69% of respondents said they are passing on tariff costs either fully or partially, the highest level since reporting began. At the same time, the number of organizations choosing to absorb costs continues to grow, reflecting a more deliberate and strategic approach to pricing.
Preparations for the holiday season are underway, and many ITSPs are taking proactive steps to manage tariff-related risks. A record 51% reported increasing inventory in anticipation of tariff impacts, the highest level since tracking began. This behavior suggests that organizations are not only reacting to current conditions but also planning ahead to maintain supply chain stability.
Taken together, these trends point to a market that is markedly optimistic and increasingly confident in its ability to navigate trade-related challenges.
