3 April 2025
Trump’s tariffs to bolster domestic industries have introduced significant volatility for businesses reliant on cross-border transactions. The stock markets have tumbled, and the USD has hit a six-month low after sweeping tariffs hit markets. For importers and exporters, this isn't just a headline; it signals both emerging risks and untapped opportunities. In this article, you’ll uncover:
- Key trends emerging from the shifting global landscape
- What does this mean for SMEs?
- How can Ebury support you in navigating this shift?
Key trends emerging from the shifting global landscape
With new U.S. tariffs taking effect, two key trends emerge: the de-dollarisation of global supply chains and disruption to established trade corridors.1. Accelerated de-dollarisation of global supply chains
De-dollarisation means reducing reliance on the U.S. dollar in trade, finance, and reserves. This happens when countries diversify into other currencies (like the euro or yuan) and gold. To reduce reliance on the U.S. dollar, they may increase usage of local currencies for international trade, meaning international businesses need to be prepared to manage the related risks.2. Disruption to global trade corridors
The tariffs can lead to increased costs for importers and exporters, and may lead companies to reroute supply chains or shift sourcing. Also, supply chain uncertainty may slow investment in global trade infrastructure and delay shipments.What does this mean for SMEs?
Increased costs
Rising tariffs are set to inflate the cost of imported goods, as they will now need to pay more for imported goods. This can directly squeeze profit margins for small businesses. To maintain earnings and cash flows, businesses must strategically navigate price adjustments without losing on customer demand. Exporters are fearful of cost increases in their exports, hindering their competitiveness.Disruption in the supply chain
Tariffs can upend supply chains, making it further difficult for SMEs to secure the goods they need.Compliance risk
With new regulatory hurdles being vague, imports and exports with the US can mean navigating additional trade barriers and regulatory risks.Retaliatory tariffs
Small businesses selling US products abroad worry about facing retaliatory tariffs enacted by trading partners. Retaliatory tariffs could spark trade tensions and reduce trade volumes.How can Ebury help SMEs turn turmoil into strategy?
Our comprehensive capabilities allow us to open alternative markets, streamline your payouts and receivables, and help you hedge your FX risk systematically.Diversify
For exporters seeking alternative markets for expansion, we can help you diversify away from the US by facilitating your transactions in new corridors.Transact globally
We provide local accounts in 29+ currencies and a deep local payout network in 130+ currencies around the world to explore new markets.Pay and collect locally
Ebury's comprehensive local account can help importers and exporters invoice their suppliers'/customers' local currency.Manage FX risk in the supply chain
With a comprehensive FX Playbook and hedging solutions, you can lock foreign exchange rates flexibly in 60+ currencies with a host of risk management products. This helps you to take control of the FX risks in your supply chain and achieve efficiency.Ready to explore the possibilities?
Any business can make informed decisions, effectively manage currency risks, and prepare themselves for success in international markets with the right hedging partner, knowledge and tools.FX update: Markets hit the panic button after Trump's tariff announcements
Trump's "Liberation Day" announcements on April 2 sent ripples through global markets as investors gauged the impact of the harshest US levies in a century. Our experts decode the tariffs imposed on most countries. Unlock the complete report hereFX risk management playbook: Manage your currency risk like a pro
Our experts have compiled this guide to help you build a robust risk management frameworkwith a step-by-step blueprint and navigate FX markets confidently.Access your copy of the 'FX Playbook' here
