Global businesses are adjusting to an evolving trade environment by deploying a range of strategies to counter rising tariffs, supply chain pressures, and increasing operational costs. HSBC’s latest Global Trade Pulse survey — capturing the views of 6,750 decision-makers across 17 markets — shows that firms are acting decisively to manage risk and safeguard growth.
The findings reveal a clear shift towards resilience-building measures: 84% of companies are prioritising supply chain diversification, half intend to expand into new markets, and two-thirds expect costs to continue rising over the next six months. Despite these pressures, business confidence in understanding trade policies is improving.
Clarity and confidence fuel adaptability
Following a testing start to 2025, many firms report greater stability as they adapt to the current trade and tariff landscape. According to the survey, 67% of respondents now feel more certain about the effect of trade policy on their business operations than they did six months ago, while 77% find it easier to interpret recent policy changes. This enhanced clarity is helping companies plan ahead and make more informed strategic decisions.
As understanding of the shifting trade environment improves, concerns over substantial revenue losses have reduced significantly. Only 22% now anticipate potential revenue declines of more than 25%, compared with 37% in the previous survey period. Looking ahead, most businesses expect revenue growth, with 53% forecasting an increase within the next six months and 58% predicting further gains 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 USA feel most prepared for trade regulation shifts, with 52% of firms in this market feeling well informed and prepared, compared to 35% in Europe and just 32% in East and North Asia.
In addition to diversification, businesses are seeking new trade corridors to build resilience against instability. Europe and Southeast Asia are the top destinations for expansion (40% and 36% respectively), followed by North America and East/North Asia (both 32%). South Asian businesses lead in prioritising Europe with 55% targeting expansion there. Conversely, North America is where companies plan to reduce reliance the most (22%) followed by South America (16%). This reorientation signals a deliberate rebalancing of global trade flows.
Vivek Ramachandran, Head of Global Trade Solutions at HSBC said; “Despite global negotiations and shifting tariffs, businesses appear to be settling into a steady state of constant adaptation. 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.”
Diverse coping strategies and trade corridors drive resilience
Companies are actively deploying a broad range of strategies to mitigate trade risks, safeguard long-term competitiveness and adapt to a volatile trade environment. More than three-quarters (76%) 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. Half of all companies (50%) plan to enter new markets, 47% are rebalancing products and services, and 43% are exploring mergers or acquisitions. 75% of businesses are reassessing or have already made changes to where major processing and assembly activities take place—a clear sign that the global supply chain map continues to shift in response to evolving risks and opportunities.
Globally, confidence in long-term trade ambitions remains robust. 88% of respondents expect to grow international trade in the next two years. At the same time, 75% of international businesses say that trade uncertainty has encouraged them to evolve and explore new opportunities—a sign that changes to trade are acting as a catalyst for reinvention, not retreat.
Diversification is also a central theme in managing trade disruption. 84% of businesses are diversifying their supply chains—making it the most common supply chain coping strategy reported by companies. Larger corporates lead the way: 44% of firms with annual revenues above USD 2 billion have already diversified their supply chains, compared to 37% of those with revenues below USD 500m. This highlights that scale and resource availability play a key role in how effectively companies can manage trade volatility.
Cost and revenue pressures persist
Although businesses are taking proactive steps to strengthen resilience, trade-related financial pressures persist. The survey shows that revenue remains vulnerable to shifting trade policies. Businesses relying entirely on goods are more exposed to revenue impacts as a result of trade uncertainty: 42% of this segment report a negative impact on revenues compared to six months ago, as opposed to 33% of services businesses.
Cost pressures are also mounting. Two-thirds (66%) of companies expect costs to increase over the next six months, driven primarily by tariffs and customs duties (54%), as well as higher costs for shipping and freight (47%).
Ramachandran 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.”
