Boards caught in trade wars have to ask the right questions

Boards caught in trade wars are thrust into action whether they’re prepared or not. The problem is that many don’t see the full picture. 

There’s no getting around the fact that trade wars and tariffs are a core risk. They’re part of the new normal, and corporate strategy needs to reflect that because, at least for now, predictability is out the window. 

Since the beginning of 2025, we seem to return to the notion of trade wars or tariffs every couple of weeks. As usual, the uncertainty begins at the White House, where Donald Trump continues to rely on tariffs as a powerful economic weapon. Enemies, allies, it doesn’t matter; Every country or trading bloc has to take a turn in Trump’s spotlight. 

In August 2026, it’s Canada’s turn, and this one looks big. 

The breakdown of trade talks has hardened rhetoric significantly and produced a fresh batch of new tariffs that will affect tens of billions of dollars worth of goods and services. 

There’s no denying that it’s difficult for business leaders in this kind of scenario. All they can do is sit and wait for new rules to take shape, and then change, and then change again. 

Back-and-forth tit-for-tat plays havoc with long-term strategy. 

But that’s the reality that business leaders need to get used to and, crucially, it’s up to business leaders to ask the right questions to try and wrestle back some control from the economic chaos.  

Since February 2025, when “liberation day” was first mooted, Google noted a spike in searches for the term “tariffs”. Using the interest-over-time metric – a relative scale measured from 1-100 – the term jumped from its routine 1/2 ballpark to peak at 100. Since then, it’s hovered between 6 and 20, and never returned to pre-2025 levels. 

Tariffs are now a routine worry. Their scale is challenging enough, but their unpredictability is what really makes it a defining feature of this decade. 

What’s more, long-term strategies written 5-10-15 years ago give this idea very little attention because, back then, it was routine compliance. The fact that it spells chaos now only adds to the nightmare for many directors and executives, who have all eyes on them, expecting them to give a clear picture through the turbulence. 

The latest trade war threatens US and Canadian businesses above all others. With news that tariffs will get worse, leaders are wondering how they’ll respond, how they’ll adjust their supply chains, core markets and balance sheets to accommodate the new costs and still make a profit. 

That’s a big, important task, but the issue for many corporate leaders is that they’ll stop there. 

Their questions all deal with “can we withstand this?”. Smart directors will go a step further, asking “can we withstand anything?”

Obviously, it’s not as easy to substitute the word “anything” in there and still produce a practical roadmap. But it opens up possibilities, and it’s the only way corporate leaders can regain some control over this unpredictable market. 

Businesses need to ask themselves the broader questions, like:

• What is our capacity to adjust target markets, pricing and supply chains in response to any crisis? How quickly can we pivot, and can that speed improve?
• What skill sets do we have among boards and executives in relation to geopolitics? Do we have members who are experts in looking further ahead?
• What resources have we budgeted for to assist in pivoting?
• Have we solidified lines of communication to keep stakeholders informed through sudden shifts?

It’s not to say that asking these questions completely future-proofs your business. Nothing can completely future-proof a business. 

However, asking these questions goes a long way to ensure that shocks don’t break your business beyond repair. It forces you to dig deeper and analyse core capabilities, decreasing risk once you put fundamental safeguards in place that weren’t there before, or were there but needed updating. 

Also, asking the questions reflects the new reality of business: anger is everywhere, animosity is the new diplomacy, and that means the shocks we’ve had before will happen again. 

If your board or executive team lacks hands-on expertise in navigating trade shocks, now’s the time to fix that. Whether it’s hiring experienced professionals or tapping independent advisors with trade policy backgrounds, find what you need and fast. Use your network, upskill trusted personnel within your ranks. This knowledge is now a core capability. 

You might have thought Tariffs would bring uncertainty when Trump took office, then settle down. But we’re almost two years into his presidency, and what we’ve learned is that rather than a “reset”, he very much favours a continuous spotlight that simply shifts according to what he feels is most pressing. 

Navigating that, as a business, will always be difficult. There’s always room for pushback and more chaos. You need to be ready to stay healthy, even as things escalate and de-escalate around you. When the same cycle recurs in a few months, you need to be ready for that too.