By Dr. Wilson Chew and Jaslene Pang
With US’ so-called reciprocal trade tariffs likely to raise costs and weaken demand,
companies need to review their strategies and forecasts.
Those hoping for investors, meanwhile, need to realign their business models
to stay attractive in the wake of the tariffs.
Abstract
Southeast Asian growth enterprise business leaders have been grappling with the implications of the US’ so-called reciprocal trade tariffs since they were announced earlier this month. With these tariffs likely to raise costs and weaken demand, companies need to review their strategies and forecasts. Those hoping for investors, meanwhile, need to realign their business models to stay attractive in the wake of the tariffs.
To understand how these tariffs are shaping business strategy sentiments, growth strategy advisory firm JP Wilson interviewed 70 business leaders, across industries, about the impact of the tariffs on their business performance over the short to medium term.
Southeast Asian countries, especially those in the Indochina region, are among the hardest hit by the tariffs . Notwithstanding the tariff stay, there has been no indication of any reduction of the high rates imposed on Indochina countries. As such, the tariffs will weigh heavily on Southeast Asian growth enterprises, particularly those with a regional footprin
In response, Southeast Asian growth enterprises must urgently revise their strategic plans to directly address the ensuing challenges. Investors are increasingly favoring high-performance companies focused on non-US markets. Those Southeast Asian growth enterprises that can successfully evolve their business models will be better positioned to weather the ongoing uncertainties and eventually secure sustainable long-term growth.
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