Tariffs are the new normal, and now most CEOs expect the import taxes to outlast the Trump administration, PwC report finds

Ancient Greek philosopher Heraclitus was credited for saying, “Change is the only constant,” and about 2,500 years later, American CEOs are heeding his wisdom.

Executives are accepting tariffs as the new normal and are preparing to weather the levies even after President Donald Trump leaves office, according to a report published on Monday from consultancy PwC. In a survey of 633 U.S. executives conducted last month, PwC found 86% treated tariffs as a permanent planning assumption.

“CEOs aren’t planning around short-term tariffs anymore,” Kristin Bohl, PwC U.S. partner in Customs and International Trade Practice, told Fortune. “They’re treating tariffs as part of the new normal for doing business, with the expectation they’ll be in place for years.”

Despite the Supreme Court striking down tariffs Trump imposed under the International Emergency Economic Powers Act (IEEPA), uncertainty has remained around the future of U.S. import taxes.

Following the ruling, Trump imposed a 15% global tariff under Section 122 of the 1974 Trade Act, which authorizes a temporary, 150-day tariff without congressional approval. These levies would expire July 24. Tariffs imposed under Section 301, which Trump invoked under his first administration in 2018, are also still in effect.

The Congressional Budget Office projected prior to the Supreme Court decision that the federal government would bring in more than $4 trillion in revenue from custom duties over the next 10 years.

As companies navigate ongoing supply chain challenges—complicated further by the war in Iran—they must also contend with whether they will pursue refunds for tariffs paid under IEEPA.

Because the Supreme Court did not outline specifics on how the refunds would be determined, the Court of International Trade and U.S. Customs and Border Protection (CBP) have been tasked with rolling out the refund process. The first phase of CBP’s online automated payment system is slated to launch next week, and refunds should take about 45 days to distribute after that, according to the agency.

PwC suggested the companies most effective in navigating tariffs are the ones accepting the reality that they will likely continue to change.

“Our advice is simple: act now,” Bohl said. “Build tariffs into pricing, supply chains, and operating models, and stay flexible. The companies that pull ahead will be the ones that actively reduce tariff exposure and leverage mitigation strategies.”

Companies feeling the squeeze

Even with relief possible through tariff refunds, many companies have had to make challenging decisions to navigate the changing trade environment. Lamborghini, for example, saw record deliveries last quarter, but reported shrinking profitability, due in part to tariffs taking a bite out of operating margins. CEO Stephan Winkelmann told Fortune in March he expected sales to remain strong amid a “new normality” of customers better understanding the tariff landscape.

A KPMG survey in February found Lamborghini was not alone in dealing with tightening margins. The consultancy reported more than half of U.S. companies also experienced a similar squeeze, and 70% said they delayed major investments as a result of tariffs.

Navigating uncertainty around refunds has also forced companies to assess their appetite for risk, particularly as many reckon with the need for immediate cash. Some importers have turned to hedge funds and liquidation specialists, selling the rights to their tariff refund claims for a fraction of their value. The tradeoff is they no longer having to question when the refunds will be distributed, or whether they will receive less than their claim.

Others are choosing to keep the rights to the claims, but use them as collateral for loans. This strategy would allow U.S. firms to receive an influx of capital while also being able to cash in on their refunds once they become available. There are here risks, too: The government may only issue a partial refund or reject a company’s refund claim. And if refunds are delayed, the interest on a loan may exceed the value of the refund itself. 

Alex Hennick, president and CEO of A.D. Hennick and Associates, a liquidation firm that specializes in distressed asset recovery, said as companies are continuously faced with tariff-related obstacles, they will have to weigh these challenging decisions.

“It’s coming to the point where some people might have no choice,” he told Fortune. “They’re either going to have to sell their claim or they’re going to have to borrow money to get money in order to continue to operate their business.”

This story was originally featured on Fortune.com