The tariff checklist for boards: how to weather the storm

The tariff checklist for boards: the corporate governance guide to finding your feet in the latest geopolitical standoff 

Tariffs are back—big time. The latest round of trade wars, sparked by the U.S., is rattling global markets and sending supply chains into a tailspin. Costs are rising, businesses are scrambling, and corporate leaders are left wondering what to do. 

The confusing thing about all this is its unpredictability, stemming from Trump’s see-saw political style, being threatening one day and kind the next. You can’t be sure what the end result will be. 

Unfortunately, we have to play along with that game for now because Donald Trump is the leader of one of the world’s most powerful economies. To put it in his terms, he “holds a lot of cards.”

This isn’t just another policy headache for directors—it’s a full-scale governance nightmare because they still have to adapt to the unpredictable. Companies failing in this effort will see their profits squeezed, operations disrupted, and investors fleeing. But those that get ahead of the curve? They’ll be the ones shaping strategy, not reacting to it.

So, what’s the game plan? Here’s your tariff checklist—five must-haves for boards looking to steer their companies through the chaos.

Donald Trump ran on a policy of tariffs for everybody, and he’s coming through on that promise. Enemies, allies, it doesn’t matter – Trump will place tariffs where he sees fit. 

Countries in the firing line so far are Mexico, Canada, and the entire European Union. All are hitting back with retaliatory measures, meaning we could see a full-blown trade war any day now.

It will likely result in higher prices, supply chain crises, and geopolitical standoffs. Boards cannot afford to be caught off guard in this kind of environment. Now is the time to take control, challenge assumptions, and rethink strategy.

Want to make sure your company doesn’t get blindsided? Here’s what every board needs to do right now.

Tariffs may look like a financial issue on the ground, but managing them takes bold leadership, so they’re a governance issue, too. 

One of the first ways your company will take on tariffs is to analyse the risk involved. So, if your board isn’t fluent in risk management, supply chain strategy, and global trade, you’ve got a problem. Fast-track upskilling or bring in external advisors who can spot risks before they become crises.

This is a crucial first step because every company is different; some may be affected by trade wars more than others.

It goes without saying that these tariff stand-offs are part of a larger political realignment, where traditional friendships become strained and money speaks louder than political principles. 

Trade policies are shifting daily, and boards need real-time intelligence to keep track of them all, not just periodic updates. Why? If trade policies shift daily, the same can be said for the best strategic decisions. What made sense last week might be bad cal this week, and vice versa. The only way directors will be sure about all this is to stay updated with all new developments. Set up new alerts, take half an hour to monitor major news each morning and evening, whatever it takes.

Use one of your core powers – and responsibilities – as a director, and ensure you are always asking questions about your strategy because when tariffs disrupt global norms, complacency will kill your margins. 

• Are you too reliant on one country for sourcing?
• Can you diversify your supply chain before it’s too late?
• Can you adjust pricing strategies to absorb new costs?

If no one on your board has experience navigating trade wars, fix it now. Options include:

• Bringing in an expert on global trade and economic policy
• Creating a trade risk committee within the board
• Working with external consultants to get ahead of risks

Trump’s unpredictability may be frustrating to follow in the news, but the truth is that you can still plan – it just might take a little more work. 

Scenario-planning is your answer. Boards should run drills for as many outcomes as realistically possible, mapping out potential risks and responses, so that once things settle down, the company can adapt quickly to a new norm, and won’t be completely undone by tariffs. Just think of what a good impression it will make on shareholders when you can calmly state in a meeting that you know your business’ next move despite the current geopolitical chaos.

The tariff war isn’t going away anytime soon, and companies that treat it as background noise will pay the price. Boards need to take charge, ask tough questions, and never allow hope to take the place of careful planning.