Tariffs may come, tariffs may go, you must lead regardless
- HO Seng Chee & Steven LIEW
- May 24
- 4 min read
Recent headlines suggest a “pause” in tariffs. But for business leaders — especially those without armies of consultants or global war rooms — this isn’t the time to relax. It’s the time to adapt.
Whether you’re running a multinational, a smaller enterprise or a start-up, you need to be agile. Here are five things businesses should consider doing now — two tactical, two strategic, and one that is both.
1. Tactical: Understand the Terrain — Tariffs, Rules of Origin, Supply Chains
The days of assuming smooth global trade are over. Leaders must get closer to the details: Which tariffs apply? Where are your raw materials from? How are they classified?
E.g., if you’re exporting to the US from Southeast Asia, the “rules of origin” could mean the difference between duty-free access and a tariff of 10% (or more). Many businesses simply don’t check. And this isn’t just a job for your shipping manager either.
👉 What to do:
Revisit your supply chain. Do it beyond Tier 1 suppliers.
Take advantage of tools and knowledge banks from government agencies and trade associations. E.g., the Singapore Business Federation has a “Tariff Finder” course on how to calculate applicable tariffs. Look for similar resources in your country.
Train your people to understand how trade classifications affect pricing and margins.
If you’re in services, don’t tune out. You may still be affected by your customers’ supply chain shifts, which could impact service delivery and compliance expectations. Ask your customers how they are impacted and how you can help.
2. Tactical: Protect Your Downside — Cash, Contracts, Contingencies
We’re seeing faster, less predictable policy changes. What happens if tariffs return overnight? Or new bans disrupt a major market? Many businesses are already feeling the pain of cancelled orders and rising input costs. Now is the time to prepare for sudden shocks.
👉 What to do:
Assess cash reserves, e.g., can you absorb a 20% cost increase for 90 days?
Avoid long-term contracts without pricing flexibility. Negotiate for price adjustment wiggle room.
Review your force majeure and exit clauses. Consider adding specific scenarios where a contract may be terminated or renegotiated.
Line up alternative suppliers now, even if they’re just backup options.
Downturns favour those who are prepared.
3. Tactical + Strategic: Recalibrate for a World in Flux
Old assumptions — open markets, fixed supply routes, global labour pools — are changing. While it’s unclear what will replace them, businesses must prepare to flex.
E.g., a US-focused logistics firm should diversify its customer base. A software company could shift development teams to different time zones. An OEM might reassess material sourcing to comply with trade rules.
👉 What to do:
Build in “optionality,” e.g., multiple suppliers, multiple markets, multiple sales channels.
Make your teams cross-functional and location-flexible. Remote working makes many things possible.
Avoid brittle dependencies, e.g., over-relying on one customer, one factory, or one payment platform.
Agility isn’t chaos. It’s designing your business to flex without breaking.
4. Strategic: Reconsider the US Dollar’s Role in Your Business
Experts warn the USD’s dominance in global finance and trade may be waning. The change is gradual, but its effects are already visible, especially if you price in USD but source in other currencies. Fluctuations in exchange rates can distort the financial picture, even when your operations are steady.
👉 What to do:
Review your FX exposure. Are you actually hedged, or just hoping?
Talk to your banks or financial advisors about new hedging tools or treasury services.
Reconsider where you hold reserves. Is USD still the best option?
Currency is no longer a background issue. It should be part of your leadership conversation.
5. Strategic: Rethink Your Business Model — Geography, Structure, Incentives
Now is the time to examine your business model with fresh eyes. Rising geopolitical risks, the AI revolution, and new government incentives present both threats and opportunities.
Questions to ask:
Can back-office functions move to lower-cost countries?
Can you split manufacturing to reduce concentration risk?
Are you tapping into tax or relocation incentives?
Singapore, for instance, supports firms regionalising operations. Other countries offer similar incentives.
👉 What to do:
Engage with trade agencies or chambers of commerce.
Run “what if” scenarios, e.g., moving 20% of ops elsewhere.
Watch competitors. Are they already repositioning?
This isn’t just about cost-cutting. It’s about playing a new game with new rules.
Final Word: You're Not Alone – Empower Your Teams
Nobody has all the answers. But you must ask the right questions and be ready to act. This is the time to challenge your teams: Run workshops. Brainstorm scenarios. Do a strategy retreat. Anything except business as usual.
The post-tariff world isn’t necessarily calmer — but it can be navigated. With awareness and flexibility, your business will not only survive the next shock, it might emerge a winner for it.
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Seng Chee is a Board Director and Leadership Advisor. He helps CEOs and teams succeed through good leadership practices.
Steven is an angel investor and public policy veteran. He advises startups on policy, communications and go-to-market strategies.
We welcome your thoughts/feedback.
