April 29, 2025
Since retaking office in 2025, President Trump has initiated a series of aggressive tariff measures which have brought substantial impact and uncertainty to markets and supply chains. Governments around the world have responded to the tariffs with rapidly evolving policies to protect and build domestic supply chains and mitigate risk of disruption from global events, including the weaponization of exports. Consequently, there is and will be increasing supply chain inefficiency, higher costs and significant uncertainty of core assumptions underpinning business plans. Sponsors, lenders, customers and vendors, as well as corporate management, are now required to make educated guesses on key business decisions, which significantly increases risks and challenges faced. There is much less clarity on how to plan a budget, much less a five-year investment plan.
