In recent months, escalating trade tensions among the United States, Canada, China and Mexico have culminated in a series of tariffs, igniting concerns over a potential trade war, and the likelihood of this becoming a reality is becoming increasingly serious.
The United States has imposed significant tariffs on imports from these countries, prompting swift retaliatory measures from leaders, with Canadian Prime Minister Justin Trudeau, being particularly vocal about his country’s stance on the situation and Trump’s aggressive policy making.
Unsurprisingly, this climate of uncertainty poses substantial challenges for businesses operating within these economies, as they grapple with fluctuating costs and disrupted supply chains – never mind the knock-on effect that this will have on the rest of the world.
Preparing For the Unpredictable: The Ultimate Conundrum
Experts warn that such unpredictability can seriously hinder investment and economic growth. For instance, the U.S. energy sector is anticipated to experience significantly increased prices due to tariffs on Canadian imports, potentially raising the cost of gas by up to 50 cents per gallon in certain regions.
Similarly, the toy industry faces price hikes too, with expectations of a 15% to 20% increase by autumn, affecting consumer spending and retail dynamics.
So, in such an inherently uncertain time, what can businesses do to mitigate the potential negative effects that this trade war will have on them?
We spoke to business experts across a variety of different industries to find out how they think these tariffs and a looming broader scale trade war will affect businesses and, most importantly, how they think businesses can try to prepare themselves.
Our Experts
- Laurent Descout: Co-Founder and CEO of Neo
- Rupal Karia: GM – UKI & MEA at Celonis
- Sabby Gill: CEO of Dext
- Simon Geale: Executive Vice President at Proxima
- Eric Huttman: CEO of MillTechFX
- Sebastian Dori: Chief Purchasing Officer at PHINIA
- Thomas Adcock: Tax Partner at Gravita
- Luis Barros: Chief Operations Officer at Asendia
- Andy Coussins: Executive Vice President at Epicor
- Chris Eldridge: CEO of Robert Walters UK & Ireland
Laurent Descout, Co-Founder and CEO of Neo
“The potential for US tariffs on EU goods could drive increased currency volatility, impacting costs and global trade flows. Businesses operating internationally need to manage these risks proactively, with FX hedging playing a crucial role in protecting margins and ensuring cost stability.
Beyond hedging, businesses must have seamless access to multiple currencies without the burden of managing multiple accounts. They need solutions which enable companies to send, receive, and hold funds in various currencies efficiently, helping them navigate shifting trade conditions with greater flexibility. At a time when trade barriers can extend inventory cycles and tie up working capital, fast and cost-effective cross-border payments are critical to maintaining liquidity and reinvesting in growth.”
Rupal Karia, GM – UKI & MEA at Celonis
“Tariffs have dominated recent headlines. As global trade policies shift, enterprises face rising costs, supply chain bottlenecks, and strategic sourcing dilemmas. The ability to identify, quantify, and react to these risks is essential for maximising the time organisations have to formulate and implement the right response.
This is where Process Intelligence comes in, providing real-time, cross-functional insights, enabling businesses to navigate supply chain volatility with data-driven decisions, breaking up functional, system and process silos.
Process Intelligence provides a clear view of a company’s import and export transactions, assessing tariff exposure and financial risk. Organisations can quantify additional costs related to purchasing and selling goods, helping finance and procurement teams adjust pricing models and cost structures in real time.
As companies face an increasingly complex and unpredictable trade environment, agility and adaptability are paramount. Tariffs will come and go, but Process Intelligence is the constant that keeps supply chains running smoothly, today and tomorrow – because when processes work, supply chains work.”
Sabby Gill, CEO of Dext
“The imposition of US tariffs on Canada, Mexico, and China has sent global markets into turmoil, with UK businesses now bracing themselves for potential fallout. While the UK has not yet been directly targeted, UK exporters are vulnerable to further trade disruption, which will be a real challenge to competitiveness. More than ever, it’s critical that businesses in the UK enhance their strategic and scenario planning, especially those reliant on US trade.
Small businesses, in particular, may bear the brunt of these potential tariffs, given they often lack the resources to absorb or offset increased trade costs. To prepare, they must identify key risks, plan for multiple financial scenarios, and build resilience against fluctuating costs and income. With tariffs driving up expenses, reviewing supply chains, exploring alternative suppliers, and sourcing materials from lower-tariff regions will be critical.
Beyond supply chain adjustments, staying informed on policy changes, adjusting pricing strategies, and renegotiating contracts where possible will help businesses remain agile. Alongside this, digital transformation can reduce dependence on physical exports and open up new revenue streams. By taking proactive steps, UK small businesses can minimise disruption and strengthen resilience in an increasingly unpredictable trade environment.”
Simon Geale, Executive Vice President at Proxima
“With new tariffs set to take effect, businesses – especially those in globally interconnected industries like automotive, technology, and consumer goods – face yet another wave of disruption. As we’ve seen before, tariffs can quickly drive-up costs, unsettle supply chains, and force companies to rethink their sourcing strategies.
To prepare, businesses should focus on three key areas: diversifying supplier bases to reduce reliance on affected regions, strengthening regional partnerships to work through trade barriers more efficiently, and investing in digital supply chain solutions that provide better visibility and flexibility.
“For some, cost increases may be inevitable, but companies that act now – reviewing contracts, identifying alternative suppliers, and mitigating exposure – will be in a stronger position to remain competitive. Businesses that plan ahead won’t just weather the storm but may find new opportunities to reshape their supply strategies in a way that future-proofs operations beyond this wave of trade disruption.”
Eric Huttman, CEO of MillTechFX
“The U.S. administration’s shifting policies and rising trade tensions are intensifying market uncertainty for businesses. Given the influence of U.S. policy on global markets, it’s no surprise that these dynamics are driving significant macroeconomic shifts, particularly in FX markets.
Nearly four in five (77%) of North American corporates experienced losses from unhedged FX risk last year. In recognition of this potential to erode profits, over nine in ten (91%) North American corporates hedge their FX risk for an average of over six months, providing them with a buffer against short-term market fluctuations. This means the vast majority of North American corporates are shielded from immediate volatility, offering a sense of stability amid the turmoil.
The 9% of companies that choose not to hedge are vulnerable. As volatility takes its toll, many may be compelled to adopt a more proactive FX risk management strategy to safeguard their bottom line. That said, it’s not as easy as turning on a switch. CFOs need to evaluate their exposures, select the most appropriate financial instruments and, crucially, determine the extent to which they can afford to hedge.
With 73% of North American corporates facing rising hedging costs in the past year, they must carefully weigh the short-term expense of protection against the long-term financial risks of remaining unhedged. Though as uncertainty increases, the pressure to hedge intensifies.”
Sebastian Dori, Chief Purchasing Officer at PHINIA
“Tariffs create a disruptive dynamic, introducing uncertainty and cost pressures that force companies to reassess procurement strategies to maintain stability. Companies that have proactively strengthened supplier relationships and embedded risk mitigation into procurement strategies will be better positioned to weather these shifts. A tiered approach to supplier partnerships, where businesses prioritize those demonstrating transparency, operational agility, and long-term investment in shared goals, can serve as a natural buffer against trade uncertainties. This ensures that sourcing decisions aren’t just cost-driven but also resilience-focused, creating supply chains that can flex in response to evolving regulations and other uncertainties.
Equally, tariffs impose constraints that businesses must navigate. Those that foster deeper collaboration with suppliers – whether through joint innovation, value-engineering initiatives, or diversified sourcing strategies – are better equipped to manage cost fluctuations, supply disruptions and unlock efficiencies that offset new cost pressures.
I strongly believe that a winning attitude when addressing the impacts of tariffs is also important. Companies with agile supply chain organizations will be better suited to maintain their competitiveness and gain market share. The companies that thrive in a tariff-driven environment won’t be those reacting in isolation, but those that have already built the right supplier partnerships to pivot swiftly and sustain operations under imposed conditions.”
Thomas Adcock, Tax Partner at Gravita
“The UK has the potential to act as a trade intermediary between the US and Europe, particularly in response to US tariffs. However, for this to be effective, UK businesses must play a transformative role in the supply chain rather than merely serving as a paper entity.
Going forward, we will see companies address how these tariffs impact financial results, and there will be tricky conversations about who bears the brunt of the costs. Generally speaking, foreign tax authorities are unlikely to accept reduced taxable income, meaning companies must strategically plan rather than seek to avoid tariffs. While intermediaries may not directly save on tariffs, they could stockpile profits in jurisdictions where financial pressure is lower.
What is clear, however, is that businesses are feeling the impact of these changes today. Companies must insulate profits where possible because there will be significant disruption across the board once tariffs take effect.”
Luis Barros, Chief Operations Officer at Asendia
“For e-commerce retailers, the introduction of tariffs presents both operational and financial challenges. The removal of the De Minimis tax loophole in the US will require businesses to manage each parcel with more detailed scrutiny, resulting in higher administrative costs and potential delays. Retailers relying on low-cost Chinese imports will face increased prices, which may affect consumer demand. To prepare, businesses should start by enhancing their supply chain visibility and ensuring they have the necessary systems in place to handle increased data transmissions and customs compliance.
They can also explore diversifying sourcing strategies to reduce reliance on China, while evaluating the long-term viability of shipping products internationally. Furthermore, e-commerce businesses should consider revising their pricing strategies to account for tariffs, potentially offering more domestic alternatives or adjusting product ranges to meet changing consumer preferences. Proactive planning and flexibility will be key to navigating this new landscape.”
Andy Coussins, Executive Vice President at Epicor
“Tariffs and trade restrictions have highlighted vulnerabilities in long-distance supply chains, so manufacturers will continue to re-evaluate where they produce goods. By onshoring or nearshoring — moving production closer to key markets — companies gain more control and minimise unexpected costs. But that’s not without its challenges. Coordinating regional sites and multiple suppliers is difficult without a robust cloud ERP system to smooth out the wrinkles.
“Cloud ERP platforms are a game-changer for businesses dealing with fast-evolving trade rules. By centralising data and automating compliance checks, they help businesses respond instantly to tariff updates and reroute supply chains in minutes instead of days. No more waiting for system upgrades or worrying about outdated spreadsheets. It’s all about agility, resilience, and making data-backed decisions in real time.”
Chris Eldridge: CEO of Robert Walters UK & Ireland
“The US tariffs have added an extra layer of complexity onto the operations of many multinational businesses. Casting considerable uncertainties over immediate and longer-term disruptions. In the face of this, companies should consider their approach carefully – developing contingency plans, keeping abreast of changes in compliance and even restructuring to manage risks.
The tariffs could deliver a particular blow to industries who rely on exports – notably consumer goods, manufacturing and automative. Companies within these industries must remain agile to seize new opportunities in different territories as they arise, they can also consider domestic alternatives to avoid the costs entirely or look to optimise cost-efficiencies elsewhere in their operations to foot the additional costs.
Businesses who prioritise adaptability and resilience in the face of these changes will position themselves for success despite the continued ambiguity.”
