How tariffs are changing the consumer leadership brief in North America

Tariffs have become a persistent strategic issue for consumer companies across North America in 2026. Changes to US trade policy are shaping sourcing, pricing, investment and supply chain decisions, while continued uncertainty is making it difficult for businesses to plan around any single trade scenario.

The financial impact is becoming clearer. KPMG’s 2026 Tariff Survey found that 34% of US businesses were passing more than half of their tariff costs on to customers, up from 13% in May 2025.

Further to this, 55% of the executives surveyed expect to raise prices by up to 15% over the following six months.

For consumer companies, these pressures are also changing the leadership capabilities required to make sourcing and supply chain decisions.

Sourcing decisions are becoming commercial decisions

Sourcing has always had a direct effect on cost and availability; however, the difference now is that the range of commercial factors leaders need to weigh at the same time.

Moving production or changing suppliers can affect:

• Pricing
• Margins
• Working capital
• Product quality
• Lead times
• Regulatory exposure

It may also require significant upfront investment before the financial case is proven.

39% of the surveyed businesses are accelerating reshoring over the next two to three years, while 53% are prioritising investment in existing US operations. High labour costs and shortages of manufacturing, supply chain and logistics skills are anticipated to remain significant constraints.

Supply chain leaders therefore need a stronger grasp of the commercial consequences of these decisions. Procurement expertise still matters, but companies also need executives who can work closely with finance, sales and general management when deciding where and how products should be made.

Policy uncertainty is making flexibility more valuable

The challenge is particularly visible in sectors with complex international supply chains.

In fashion, the proportion of US companies sourcing apparel from Mexico fell from 60.7% in 2024 to 52.9% in 2025 and 31.6% in 2026, according to research reported by Vogue Business. Companies have been reconsidering sourcing strategies amid continued uncertainty over North American trade arrangements and rules of origin.

More recent tensions have added another factor. In August, Canadian businesses were preparing for the possibility of a 50% US tariff on a range of exports, while US authorities have increased their scrutiny of product origin and alleged tariff evasion through third countries.

That makes experience across several sourcing markets more useful. A leader whose expertise is concentrated in one manufacturing hub may have fewer options when conditions change than someone who has managed suppliers, production and logistics across multiple regions.

Talent mobility is also part of the equation, and companies moving production closer to the US cannot assume experienced leaders will move with it. Location, compensation and the availability of supporting technical teams can all determine whether a reshoring strategy is workable from a people perspective.

Trade expertise is moving closer to the leadership team

Tariff policy is also increasing demand for specialist capability. 31% of the companies surveyed had hired specialist roles focused on tariff, trade and compliance complexity, compared with 22% in September 2025. At the same time, 44% had invested in automation that resulted in little or no net increase in jobs.

Companies are being more cautious and selective about where they add headcount. Leadership talent who can interpret trade policy and translate it into practical operational and commercial decisions will become increasingly sought after.

The effect extends beyond trade specialists as supply chain, procurement and operations leaders may increasingly be assessed on how effectively they work with customs, compliance and government affairs teams. Commercial leaders need a stronger understanding of sourcing economics, while finance executives are becoming more involved in supplier relocation and manufacturing investment decisions.

The talent question should come before the operating model changes

Reshoring, supplier diversification and regional manufacturing can reduce exposure to some risks, but each creates different workforce requirements.

A company considering new production capacity needs to know whether the local market can supply the necessary plant leadership, engineering, procurement and supply chain expertise. Similarly, a business changing suppliers may need executives with relationships and experience in different manufacturing regions, and companies bringing more trade capability in-house may find themselves competing for a relatively small pool of specialists.

These questions are better assessed before the operating model is finalised. Talent mapping can show:

• Where relevant leadership experience sits
• How mobile those executives are
• What level of compensation may be needed to attract them

Tariffs are creating a broader brief for consumer leaders

Tariff pressure will not affect every consumer company in the same way, as exposure varies by product category, sourcing model, manufacturing footprint and customer base. Across the sector, however, decisions that once sat within separate functions are becoming more closely connected.

As sourcing choices feed directly into pricing, investment and compliance, companies need leaders who can assess those trade-offs together. That may change succession plans and role specifications, and could lead businesses to look beyond traditional sector or functional boundaries when hiring externally.

For organisations reviewing their leadership requirements in response to changing trade conditions, a clear view of the available talent pool can be a useful starting point.

Contact Proco Group to discuss your organisation’s talent requirements or the leadership capabilities available across North American consumer markets.

E: matthew.stipek@weareprocogroup.com

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