The imposing tariffs by President Trump this weekend should remind all boards that the new president's primary objectives are clear. Reducing the US trade deficits in China, Mexico and Canada in particular, business, even if it causes short-term US pain.
The deficit totals nearly $1 trillion a year, ejecting coins from the US economy, weakening its long-term position. In particular, China has benefited from this imbalance and has directed its surplus towards economic expansion and military development. Trump sees this as a direct threat to America's strength.
Tariffs are not his goal. They are simply the first strike in a broader effort to readjust trade. He has been consistent about this since 2015. This is how he forces his change. China has adapted by routing trade through Mexico and Vietnam, continuing to flow exports while avoiding direct conflict. However, this strategy is not sustainable. Here are some questions that CEOs and boards must ask themselves: What impact these trade shifts will have on our business and what signals should we watch? The game is evolving, and leaders who can't grasp their fundamental goals are caught off guard.
To thrive in today's complex global landscape, boards need to recognize President Trump's clear goals and align their strategies accordingly. His priorities are predictable, and his actions are intentional. A long-term focus allows leaders to confidently navigate volatility and turn uncertainty into opportunities.
Unstable style certainty
Trump's early moves – promoting US energy independence, announcing tax cuts, reducing regulatory barriers, and using tariffs as leverage became telegraphs long before the presidency. His agenda is centered around strengthening the American industrial base and creating a business environment that attracts both domestic and foreign investment (“Come to America”).
His belief in the enormous size and strength of the US economy drove a consistent pattern. It's about taking a bold stance, negotiating strategically and launching deals. Whether it's an involvement with leaders like Xi Jinping, a signal of openness to renegotiation of the NAFTA or cooperation with Russia, his approach reflects calculated intentions.
This does not mean that his methods lack volatility. His threats and salvo can create short-term operational difficulties. Certainly tariffs, supply chain destruction and variable currency are all challenges. But that's the environment you're facing now. To thrive, leaders must learn to live with short-term fluctuations and focus on the consistent direction of Trump's goals.
Three keys to navigating the Trump environment
To stay ahead, CEOs and boards need to adopt strategies that are consistent with Trump's approach, while still maintaining agility. Here are three keys:
Look at your actions, not words. Campaign-style rhetoric and bold declarations often serve as the starting moves for Trump's negotiation strategies. The real direction of our policy lies in what he is doing. It is not necessarily his tweets or official statements. It studies research orders, trade agreements, detailed printing of legislation, and policy shifts that affect long-term capital flows. But he never loses his long-term goals and how he places himself in finding opportunities.
Create scenarios and action options. Navigating uncertainty requires proactive planning and a structured approach. If you haven't done it yet, you'll need to create a “warroom” team dedicated to scenario mapping and crafting strategies (many companies already do this). This team should consider Trump's actions throughout the timeline, clarify his goals through short-term volatility preparation, tentative new patterns, and align with his long-term priorities.
The key questions that guide the plan are:
- How do you deal with customs duties with important inputs?
- What happens if a trade barrier delays shipments or restricts imports?
- How do you protect yourself from currency shaking?
Develop alternative supply networks, emergency response budgets, and logistics coordination. Collaboration with suppliers and customers is also important. We face similar challenges and joint problem solving can strengthen partnerships.
Building these scenarios allows businesses to prepare for disruptions with a deeper understanding of operational risks and opportunities.
Maintain the momentum of your core business. Avoid uncertainty leading to paralysis. Invest in product development, customer outreach and talent acquisition. Proactively communicate with employees, suppliers and customers to maintain confidence and integrity. Above all, focus on cash flow. Financial flexibility becomes important in the event of unexpected disruptions. By continuing to strengthen the fundamentals of your business, we ensure that you are prepared for any changes that will come.
The road from here
President Trump's leadership shaped how the United States engages with allies and competitors. His approach includes informing bold intentions, negotiating directly, and relying on the strength of the US economy. While some interpret this as unpredictable, the underlying goal is consistent and consistent with his vision for America's competitiveness.
If someone is on the right path, the chances of success increase. Trump's actions are credible and his priorities are clear. By focusing on what he is doing, building a scenario-based strategy and maintaining momentum, CEOs and boards can turn uncertainty into a competitive advantage.
The strongest leaders are not afraid of volatility. Instead, they embrace it as an opportunity to innovate, adapt and strengthen the organization. By staying bold, flexible and ingrained in Trump's consistent priorities, you can position your business to thrive in this environment.
