2025 Global Tariffs: Strategic Challenges and How Institutions Can Lead Through Disruption
GLG Insights | Verônica Grigoletto |
Photo by Ian Taylor on Unsplash
2025 U.S. tariffs are reshaping global trade, disrupting supply chains, and testing the resilience of even the most sophisticated institutions. With sweeping import duties now in effect across more than 60 countries, institutional leaders must think beyond compliance and step into a new era of cross-border strategy, stakeholder communication, and public trust management.
As of August 1, President Trump’s new executive order has imposed tariffs of 10% to 41% on imports from over 60 countries, including Brazil, Canada, India, Taiwan, and Switzerland. For multinational organizations, these developments are not only raising costs—they’re shifting how we lead, operate, and communicate in a rapidly evolving global market.
Why This Matters for Global Institutions
The policy—branded as part of the “Liberation Day” strategy and grounded in the International Emergency Economic Powers Act (IEEPA)—applies a base 10% tariff on all imports, with elevated rates for select countries. Brazil now faces 50% duties on key exports, excluding some essentials like aircraft parts and fertilizers.
In this climate, strategy leaders must think beyond compliance. Institutions must reassess their operating models, reconfigure supply chains, and protect stakeholder trust—while preparing for volatility that may escalate further.
Understanding the Strategic Use of Tariffs
Photo by CHUTTERSNAP on Unsplash
These tariffs are not just economic policy. They are tools of geopolitical leverage. By invoking IEEPA, the administration is signaling that trade will be used as a negotiation tactic to secure wider political outcomes—on everything from defense and technology to immigration and energy cooperation.
For global brands, this creates heightened uncertainty. When tariffs are driven by political motives rather than economic strategy, the implications ripple across governance, brand trust, and decision-making speed.
This moment marks a shift: companies must prepare not only for economic disruption but also for reputational consequences and geopolitical entanglements.
The Real-World Impact
1. Supply Chain Disruption and Cost Pressure
Manufacturers in the U.S. are seeing a 2% to 4.5% rise in input costs, especially in sectors like automotive, electronics, and AI. Consumer prices are rising sharply, with the average household projected to spend $3,800 more per year. Institutions reliant on global sourcing now face steep renegotiations or the need to localize operations.
2. Leadership Credibility and Narrative Management
In an age of digital scrutiny, leaders must explain tough decisions with transparency. Messaging around cost increases, vendor pivots, or regional instability must be handled carefully. Organizations that fail to communicate clearly risk eroding public trust and stakeholder alignment.
3. Operational Complexity Across Borders
Institutions operating in Brazil, China, Mexico, and other impacted nations face friction at every level—from shipping delays to policy uncertainty. Strategic alignment across regions is now critical to minimizing disruption and safeguarding brand reputation.
4. Legal and Governance Risk
These tariffs are facing active legal challenges. As regulatory landscapes shift, institutions must account for potential reversals, litigation exposure, and evolving compliance requirements.
What Institutions Should Be Asking
Before the next disruption hits, leadership teams should be asking:
Are we overexposed to tariff-impacted regions or suppliers?
How are these trade shifts affecting our local partners and CSR obligations?
Have we tested our communications strategy with key audiences across markets?
What proactive steps are we taking to reinforce institutional trust and resilience?
How GLG Supports Institutional Leaders
We help global institutions turn disruption into alignment and foresight. From supply chain strategy to narrative leadership, our work is tailored to your moment of complexity. Our services include:
Policy Foresight & Risk Strategy: Future-proofing your leadership strategy with data-backed trade impact scenarios.
Cross-Border Impact Mapping: Analyzing tariff exposure across business units, operations, and mission-driven programming.
Leadership Communications & Narrative Clarity: Aligning executive messaging to maintain public trust and internal cohesion.
We work with Fortune 500 companies, government agencies, philanthropic foundations, and social impact institutions. No matter your sector or geography, we offer insight and structure to help you lead effectively in times of uncertainty.
The Strategic Opportunity
This moment isn’t just about managing risk—it’s about demonstrating leadership. Institutions that act early can position themselves as resilient, transparent, and globally minded.
If your organization is navigating pricing pressure, reputational risk, or operational complexity, now is the time to move with clarity and intent.
Let’s build a global strategy that prepares your institution for what’s next.