Tariffs, Procurement, and Contracts: What Leaders Need to Watch 2026

Tariffs continue to reshape global supply chains—but for procurement leaders, the challenge isn’t just higher costs. It’s the growing complexity of managing tariff volatility across sourcing decisions, supplier relationships, and commercial agreements.

Recently, we sat down with experts from PwC to unpack how tariffs are changing procurement priorities—and what organizations need to do differently to stay agile. One theme came through clearly: tariffs are no longer an episodic disruption. They are forcing a more fundamental rethink of how procurement strategy is designed and executed.

Tariff volatility is accelerating procurement transformation

Ron Klein, Partner at PwC focused on procurement transformation, noted that tariffs expose the limits of traditional procurement operating models—especially those built on static assumptions about cost and supply.

“Procurement teams are being asked to make decisions in an environment that’s constantly shifting,” Klein noted. “That requires a different level of flexibility and coordination than most organizations were built for.”

Rather than treating tariffs as an exception to manage after the fact, leading procurement organizations are embedding tariff considerations directly into category strategy, supplier selection, and negotiation posture. The goal is not just cost containment, but adaptability—preserving options when trade conditions change.

Strategy alone isn’t enough

However, procurement transformation often stalls when strategy meets execution. While tariff risk may be discussed during negotiations, it isn’t always reflected clearly—or consistently—in supplier agreements.

Klein highlighted this gap directly:

“You can have the right sourcing strategy, but if it’s not translated into enforceable commercial terms, teams end up scrambling when conditions change.”

This disconnect forces procurement teams into manual reviews, reactive renegotiations, and cross-functional fire drills—exactly when speed and clarity matter most.

Contracts become the execution layer for procurement intent

This is where contract lifecycle management (CLM) becomes central to tariff resilience. Seth Klaus, Partner at PwC, emphasized that contracts are the mechanism that turns procurement intent into operational reality.

“When tariff exposure isn’t visible or actionable in contracts, organizations lose the ability to respond quickly,” Klaus said. “CLM gives teams a way to understand what was negotiated—and what options they actually have.”

Modern CLM allows procurement teams to standardize tariff-related clauses, track rights and obligations across suppliers, and model the impact of changes without starting from scratch. Instead of reacting, teams can act with confidence.

Building for what comes next

Tariffs may be the immediate pressure point, but the implications are broader. Procurement leaders preparing for 2026 are recognizing that resilience comes from tighter alignment between sourcing strategy and contract execution.

Organizations that invest now—by modernizing procurement operations and treating contracts as active instruments, not static documents—will be far better positioned to navigate whatever trade volatility comes next.

See how leading organizations are using contracts to stay agile amid tariff volatility. Let's connect. 

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