More than half of U.S. companies say they’re now paying their suppliers late, a worrying sign that new import tariffs are already squeezing profits and destabilizing supply chain relationships, according to Creditsafe’s Tariff Risks in the Supply Chain report released in July.
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The study found that 51% of companies have delayed supplier payments since the latest round of tariffs was announced. Of those, 27% say they’re paying “slightly later than usual,” while 24% report “significant delays.” More than half of those surveyed said they’ve been paying suppliers up to 30 days past due.
“Tariffs are putting a strain on the supplier-customer relationship,” the report said. “Only 19% of companies are very confident that their customers will pay on time now that the tariffs have gone into effect.”
The ripple effect is already playing out. With slower payments from customers, suppliers are facing their cash flow struggles, which limit their ability to purchase materials, pay staff, or fulfill orders. In turn, that risks slowing down the entire supply chain.
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More than half of businesses (53%) say they’re now actively looking for alternative suppliers in other countries to avoid tariff exposure, while 54% report their customers are paying late.
The problem is compounding. Companies facing rising logistics and inventory costs — driven by tariff uncertainty — are falling behind on payments, even as they try to stockpile materials. And trust is eroding. One-third of companies said they’re only “somewhat confident” their customers will pay on time, while 12% have no confidence at all.
Creditsafe’s research is based on a survey of over 200 U.S. supply chain, procurement, and finance professionals across multiple industries.