With Trump’s new tariffs, IT departments across America are left to deal with the reality of tumultuous economic obstacles. I’ve watched as IT managers respond to tariffs, and it’s clear these taxes have a direct impact on IT spending and procurement strategies.
Our recent survey of 500 IT leaders and decision makers tells a story of disruption. It shows a world of technology caught in the crossfire of America’s rapidly changing tariff situation, and it tells a story of both daunting and impressive adaptation to these dramatic shifts.
Decisions in a Constantly Changing Environment
A staggering 74% of IT decision makers say their procurement strategies and budgets have been affected by current tariffs, or threats of tariffs, from the Trump administration. Think about this part: “…or threats of tariffs.” We’re not just dealing with well-grounded economic policy, but theoretical economic policy, too.
Those policies are having an immediate impact on boardrooms. Not only do three-quarters of American tech leaders have to modify their sourcing strategies without notice, but they have to do it knowing what might change next week.
What’s more is that the survey unveils fears about spending in the IT sector, thanks to tariff policies. In fact, 66% of the IT leaders said tariffs have reversed earlier strategies to increase IT spending in the coming year.
Tariffs May Batter The Bottom Line
When it comes to profit growth, three out of four survey respondents stated they expect damage to bottom-line numbers through 2027 if tariffs continue.
As you may have expected, a political divide has formed over this very topic. Only 62% of Republicans in the IT world think tariffs will harm their bottom line, while 86% of Democrats in IT believe tariffs damage the bottom line. Either way, most people see troubling waters ahead, but it’s fascinating to see the stark divide.
But It’s Made in America!
I’ve always tried to shop American, and I think many others agree with me on the benefits. This may be where the Trump Administration sees its biggest win, because 69% of surveyed IT leaders say they’re attempting to spend more on American-made products and import less from other countries.
This indicates that tariffs could potentially achieve one of their intended goals — the movement of IT procurement dollars back to American suppliers. I, unfortunately, think it could take years to see real results.
Everyone’s Getting Squeezed on Prices
Many tech industry sectors are feeling pricing pressure from tariffs. Only a small minority — 9.9% of respondents — said they’ve experienced no impact on IT costs. On the other hand, 47% of respondents stated they’re experiencing pricing increases for things like storage and hosting, as well as basic equipment for employees — phones, monitors, and laptops.
This tells me that tariffs have affected many day-to-day expenses required of an IT department. It’s like a death by a thousand cuts, where the increases may seem small by themselves, but they add up.
To Accelerate or Pause? How Do Companies Respond?
I’m fascinated by how companies have responded strategically to tariffs. IT leaders have turned to two separate approaches:
- Acceleration: 58% of survey respondents are increasing IT modernization investments to make purchases before price increases and more policy shifts occur.
- Pause: 28% of respondents are slowing their spending and procurement until more clarity about tariffs and pricing emerges.
I see this as similar to those interested in buying a home. Some people believe prices will only go up, so why not buy now? Others sit back and wait for prices to drop or for more information to make a sound decision. It’s simply a difference in risk assessment.
Not All Tech Sectors are the Same
I noticed an incredible difference in how each tech sector responded to tariffs. Interestingly, construction companies appear to be the most agile, as 60% have sought out alternative procurement partners.
Here are more insights on individual sectors:
- Energy & Utilities has reported the highest increase in budgets at 50%.
- That same industry, Energy & Utilities, had 87.5% of its IT leaders saying they expect damage to their bottom line.
- The telecommunications sector has displayed an impressive shift to domestic shopping, with 82.4% reporting a change from foreign to domestic procurement.
- From the survey, 56.2% of Professional Services respondents reported no impact on the bottom line, making it one of the more resilient areas of tech.
Company size matters, too. Smaller companies, with 50-100 employees, were most likely to claim less of an impact on pricing from tariffs.
Tariffs on the Horizon
When I reread these numbers, I’m reminded that we’re at a crossroads, and there’s still more uncertainty to come. The average person can look at these responses and conclude that the immediate effects of tariffs are troubling. But, there’s still a lot that remains to be seen. Will this initial disruption serve as a forewarning of more permanent issues to come? Or will we start seeing promising new trends in American investment that eventually drive costs lower and more investment in American factories and jobs?
One thing’s for sure: IT leaders must make decisions now — decisions about performance, reliability, and security. And those decisions must be made in the face of uncertainty.
Methodology
In April 2025, we surveyed 500 IT decision makers, ranging from senior managers to C-suite executives. All were based in the United States and at companies with 50 or more employees. To ensure the integrity of data collection, we employed an array of data quality methods. Alongside conventional measures such as digital fingerprinting, bot checks, geo-verification, and speeding detection, each response underwent a thorough review by a dedicated team member to ensure quality and contextual accuracy.
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