Tariffs imposed over the past year are contributing to rising layoffs and higher costs across supply chains, according to a new survey from the Association for Supply Chain Management and CNBC.
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The study found that 32% of supply chain managers report layoffs at their companies, double the number from April. The findings come as hiring has slowed across the broader economy, with job growth remaining weak and long-term unemployment rising.
In total, employers cut more than 1.2 million supply chain jobs in 2025, a 58% year-over-year increase, according to the research. Warehousing saw the sharpest change, with job cuts rising 317% compared to the previous year, a trend driven in part by increased automation using AI and robotics.
Cost pressures tied to tariffs are a major factor behind the workforce reductions. The survey found that 65% of respondents reported at least a 10% to 15% increase in supply chain costs in 2025, forcing companies to rethink budgets, staffing levels, and investment plans. Another 34% said costs rose by more than 15%, raising concerns about long-term business viability.
“Navigating the tariffs is an administrative burden,” said Abe Eshkenazi, CEO of ASCM. “We’re spending a huge amount of time tracking rule changes, validating codes and trying to find the most effective way to operate in the short term without a long-term plan.”
The White House has said businesses may receive refunds for tariffs already paid, but the issue remains under review by the Supreme Court. According to Forbes, more than 1,000 companies, including Costco, Revlon, and Goodyear, have filed lawsuits challenging the tariffs. Those companies paid an estimated $133.5 billion in tariffs under the International Emergency Economic Powers Act through mid-December.
Even if refunds are approved, supply chain leaders say the broader impact will remain. Companies report losing time to increased paperwork and cash flow pressures that cannot be reversed.
“This isn’t just about resilience and reacting to a court ruling,” Eshkenazi said. “It’s about having certainty in the U.S. economy and what kind of pricing models we can plan on.”
