UNCERTAINTY OVER FREQUENT TARIFF CHANGES OVERSHADOWS DIRECT IMPACT OF TARIFFS

While a majority of respondents (58%) in this week’s Airmic Big Question said the US’s tariffs are only having “some impact” on their organisations, their overwhelming concern is the uncertainty created by the US administration’s frequent changes of mind on tariffs over the past two weeks.

Julia Graham, CEO of Airmic, said: “The US tariffs have brought to the foreground the significant fragilities of today’s elaborate supply chains. Risk professionals must be responsive to the pace and nature of change, and continuously consider adjustments for their organisation’s business. They must operate a feedback loop within their organisations and with their suppliers, and have the courage to step up with informed and timely recommendations for adjusting their approach, especially as the velocity of changes looks set to increase in the coming months.”

Also of major concern among respondents to the Airmic Big Question survey are the knock-on effects of the US’s frequent tariff changes, such as the increased costs of borrowing and of materials, and the broader economic impact from undermined investor confidence, including the outlook for inflation and interest rates. Yet other respondents said the volatility and unpredictability around the tariffs have led to sudden pauses in key investment decisions.

Hoe-Yeong Loke, Head of Research at Airmic, said: “The global trading system as we have known it for the past few decades is likely to be changed irreversibly, as world trade stands in danger of becoming a complex set of bilateral relationships. Organisations need to prepare themselves for a new global business landscape, in which they must demonstrate agility and adaptability. At the same time, they resist the temptation to be events-led and think about a longer-term strategy.”

Respondents to the Airmic Big Question survey (27%) who said the US tariff situation is currently having “limited or no impact” to their organisations are nevertheless monitoring developments from the US closely, even when they are not operating in the US or trading with it directly.

Leigh-Anne Slade, Head of Media, Communications and Interest Groups, said: “The fast-moving developments around the US tariffs encapsulates the world of real-time risk management, in which risk professionals also have to help their organisations plan and invest strategically for the long term. As the UK’s and Ireland’s association for risk professionals, we are providing the forums such as our special interest groups for our members to exchange insights and good practice while keeping abreast of the rapid changes around the world of business and politics today.”

If you would like to request an interview and or have any further questions, please let me know.

We will be sharing the results of the Airmic Big Question with the press weekly.

You can also find the results here.

Media contact: Leigh Anne Slade
Head of Media, Communications and Interest Groups, Airmic
Leigh-Anne.Slade@Airmic.com
07956 41 78 77