Global businesses adapting to trade uncertainty

Global businesses are settling into a steady state of constant adaptation as they navigate evolving trade and tariff headwinds, according to our latest Global Trade Pulse Survey.

Our second survey asked 6,750 decision-makers from 17 markets for their views on tariffs and trade.

More than eight in 10 businesses are focusing on diversification of supply chains to mitigate trade risks – and 67% feel more certain about how trade policy will impact their business than they did six months ago.

The survey also showed that:

• After a challenging first half of 2025, businesses are finding their footing and have more clarity on the trade and tariff landscape
• 50% plan to enter new markets
• 66% anticipate further cost increases over the next six months
• 77% say they can easily understand recent trade policy changes

Clarity and confidence

This growing sense of certainty is a crucial first step in enabling firms to make informed decisions and plan ahead, our report says.

As insight into the new trade landscape deepens, revenue concerns have eased markedly. Globally, 22% are worried about a negative impact on revenues of over 25% over the next two years as a result of supply chain disruption, down from 37% six months ago.

Most companies (53%) now expect revenues to increase in the next six months – and 58% over the next two years.

Market trends

Preparedness for trade regulations has emerged as a key driver of business adaptability, allowing companies to better respond to policy shifts and make strategy adjustments.

Businesses in the US feel most prepared for trade regulation shifts, with 52% of firms in this market feeling well informed and prepared, compared with 35% in Europe and just 32% in East and North Asia, the survey shows.

In addition to diversification, businesses are seeking new trade corridors to build resilience against instability.

Europe (40%) and Southeast Asia (36%) are the top destinations for expansion, followed by North America (32%) and East and North Asia (also 32%).

“Despite global negotiations and shifting tariffs, businesses appear to be settling into a steady state of constant adaptation,” said Vivek Ramachandran, our Head of Global Trade Solutions.

“Improved clarity over trade and tariffs has emboldened businesses to plan ahead, with many seeing international trade not as a risk, but as an opportunity to reinvent.”

Coping strategies

Companies are actively deploying a broad range of strategies to mitigate trade risks, safeguard long-term competitiveness and adapt to a volatile trade environment, the survey shows.

More than three-quarters are taking multiple actions in response to increased costs, such as passing on costs to customers, renegotiating contracts, and investing in automation and AI.

International expansion and rethinking revenue models remain key priorities for global firms:

• 47% are rebalancing products and services
• 43% are exploring mergers or acquisitions
• 75% are reassessing or have already made changes to where major processing and assembly activities take place

However, cost pressures are mounting, with 66% of companies expecting costs to increase over the next six months, driven primarily by tariffs and customs duties, as well as higher costs for shipping and freight.

Vivek added: “While cost and revenue pressures persist, companies are increasingly forward-looking, realigning supply chains, seeking new markets, and building the financial resilience needed to thrive amidst unpredictability.”