THE old adage — with friends like these, who needs enemies? — seems to hold true in today’s global economy.
With the USA flicking the switch on the tariff wars against most of the world, the markets have been hammered. Some countries have pushed back, others wish to negotiate. Others are unsure why they’ve been hit, like the penguins on the uninhabited Heard Island and McDonald Islands.
The “Liberation Day” tariffs, devised without scientific or explained logic, by US President Donald Trump, has left the world in shock, with talk of another recession on the horizon.
Other than saying, you should vote wisely, is it worth expending energy moaning about what’s being taken away or maybe view this as a signal to effect change; to channel energies towards alternative solutions that could open up new opportunities?
One lesson to take away from this is not to be reliant on just one source for anything. Another old adage about eggs and baskets can be laid at this juncture.
So, strike up new relationships and build on them. When things normalise — presidential terms will end, after all — businesses may have opportunities to grow in new directions.
Meanwhile, we take a quick sampling of thoughts on the matter.
The Rise Of Regional Economies
Jamus Lim, Associate Professor of Economics, ESSEC Asia-Pacific
There are few certainties when it comes to the rapidly-evolving tariff situation, given President Trump’s mercurial nature and haphazard administrative style. Hence, it is almost always premature to offer detailed analysis of a specific policy position, since there is a possibility that it could be reversed.
That said, there are some conclusions we can draw, on the basis of the President’s history, and longstanding positions.
First, I am reasonably convinced that some base level of tariffs are here to stay. This is because Trump has been consistent in favouring tariffs as his preferred policy instrument.
Second, China — the bugbear of the United States — will continue to face the harshest trade restrictions. This tough stance has bipartisan Congressional support, and notably, tariffs on the country were not reversed during the Democrat-led Biden administration.
Third, if we accept these broad conclusions, then American consumers can be expected to face higher prices — thereby adding some (at least short-term) fuel to rekindling inflationary pressures, while leaving American businesses that have been traditionally dependent on foreign inputs (notably, rare earths) scrambling to realign supply chains.
And fourth, the uncertainty inherent in such policy will, at least in the immediate term, further erode sentiment and possibly usher in a slowdown in already-slowing economic activity (if not an outright recession, although at this stage I would expect one to be brief and shallow).
Taking a step back, I see this as another major step down the road of the continued Balkanization of the hitherto US-led postwar international economic order.
We should expect multiple economic poles to emerge in different regions of the world, and future economic activity to be more regional, rather than global, in nature.
ALSO READ: In Difficult Times, We Need Distractions
Use IP As A Strategic Shield Against Tariffs
Jingle Chen, Director, The Brand Fellows
The introduction of tariffs—whether expected or sudden—inevitably delivers a blow to businesses, both directly and indirectly. While companies may have had some months of notice, pivots in supply chain, production, or distribution cannot happen overnight. Business inertia is real. Especially for SMEs, agility is often limited by budget, existing contracts, and operational bandwidth.
From our vantage point in the service industry — working closely with MNCs and SMEs across industries on branding and marketing— any economic tremor affecting our clients inevitably reverberates through our own business. When production costs rise, one of the first questions clients ask is: Can we still afford to invest in branding and design? Unfortunately, the reflex in turbulent times is often to cut “non-essential” expenditures—branding being one of the most misunderstood casualties.
But here’s the counter-intuitive truth: in times of economic pressure, branding is not a cost — it’s a differentiator.
When tariffs drive up prices before products even hit the shelves, consumers become more price sensitive. In such an environment, brand strength becomes the key to price elasticity. For commoditised goods — sneakers, household items, basic electronics — the battle is brutal.
If your brand can’t communicate why you’re worth the extra dollar, you’ll lose ground to cheaper alternatives. For brands in this segment, now is the time to double down on brand equity, loyalty-building, and customer service. Strong branding turns alternatives into afterthoughts.
Tariffs also force companies to rethink export strategies. While global trade is unavoidable, it becomes crucial to manage exposure by adjusting market targets or boosting local sales. Still, these are short- to mid-term tactical shifts.
The long-term strategic move — Intellectual Property
As a branding specialist, I believe businesses must start treating their ideas as seriously as their inventory. Products can be copied. Manufacturing can be undercut.
But intellectual property — when protected and licensed effectively — builds a moat that tariffs cannot breach.
This means investing in patents, trademarks, and copyrights, particularly in critical markets such as China, the US, and one’s home country. Done strategically, IP offers multiple advantages: licensing opportunities, brand valuation uplift, legal leverage, and an edge in negotiations with suppliers, retailers, and even investors. It also gives brands the ability to expand into new revenue streams — think co-branding, collaborations, franchising, and product spin-offs — all without the burden of physical logistics.
IP is one of the few assets that can appreciate over time while remaining inflation- and tariff-resistant. It scales globally, requires no shipping container, and holds its value in both recession and recovery.
So, while tariffs may bruise the surface, the smart move is to protect the core. Brand strength and IP are the best armour in a volatile world.
ALSO READ: Are You Eating Authentic Indian Food?
A Balanced Global Playing Field To Emerge?
Ku Swee Yong, Director, International Property Advisor
The tariffs and their upcoming amendments will keep stock markets and foreign exchange markets volatile. The heightened business risks have led to higher financing margins and loans are getting more expensive. Inflation for construction material and maintenance costs will increase.
Property investors and tenants of industrial, commercial and residential properties are probably going to hold off on making significant moves on real estate for many months, at least until there is more clarity about costs and if there is some expectations of stability in the business environment. For example, expatriate relocations could be postponed until MNCs have reassessed their manpower resource allocation.
Whilst I am expecting fewer transactions from investors and tenants, I am feeling hopeful that there could be a better future after we have suffered a few years of pains.
The global trade blocs and all the significant economies will start to look inwards and focus on their economies. Countries will reduce their reliance on US consumers’ relentless swiping of credit cards.
New trade relationships will emerge. It will probably make North Asia, ASEAN and South Asia cooperate more closely within their blocs and with each other. BRICS countries could begin to exchange goods and services without relying on the USD and transacting outside the old system.
The result, in a decade’s time, could be a more balanced global business playing field.
Reduce Dependence On The US
Candi Kum, Business Consultant, Trader, Coach and International Speaker.
President Trump’s strategy to bring every single country to the table “begging” for reduction on tariffs is not working and ultimately the ones that suffer will be the US citizens as living expenses are driven up.
Trump thinks that the world cannot live without the purchasing power of the US. However, investors are pulling out of US stocks and the markets are taking a beating, a downward spiral towards economic breakdown and depression similar to 2008.
Many countries are establishing other trade channels with the likes of Europe, and reaching out to China as well.
APAC can sustain itself and progress, given we have all the natural resources to trade amongst ourselves.
As I’ve been doing some consulting and trading to keep busy, my advice to business partners has been to reduce/avoid anything that is USA dependant going forward and to preserve capital for the coming years.
I foresee the onset of a worldwide economic meltdown.
However, USA will be hit the hardest while Asia will be the least affected.
The demise of the USD as a global trading currency is imminent.
China, Japan and India are countries to watch in the coming years for growth and opportunities in my opinion.
ALSO READ: The Origins Of Impact Investing
Wait And Watch
Daniel Desbaillets, Chairman, SaladStop!
It is very early to know what impact the tariffs will have on our business.
We have had tougher times during Covid, and we survived.
Let’s see what happens. I believe that Trump will reverse his decisions when he sees that tariffs are not working.
Meanwhile, we will continue to focus on our business in the same way we did during Covid. We know how to put our survival kit on.
We will continue to watch trends since we see retail down by more than 3 percentage points. There is a slowdown for sure and this is seen in many areas of Asia.
What are your thoughts on this topic? Email your views and suggestions to editor@storm-asia.com
