Business executives face significant challenges in today’s unpredictable landscape. When I recently spoke with the leader of a multibillion-dollar corporation about the stress associated with navigating President Trump’s trade policies, his response was candid: ‘That would be an understatement.’

As a result, many leaders have found it necessary to overhaul their strategic plans for 2025, redirecting their focus toward minimizing exposure to the implications of increased tariffs. Projects aimed at attracting top talent or investing in artificial intelligence have been sidelined.

The term ‘uncertainty’ featured prominently—80 times—in the latest Beige Book survey by the Federal Reserve, a sharp rise from just 11 mentions a year prior. In the Boston region, the survey indicated that while employment grew, hiring plans became more conservative due to rising uncertainty, largely attributed to ‘tariff-related concerns.’ Similarly, in Philadelphia, sentiment declined, and businesses expressed diminished optimism regarding future growth amidst escalating economic uncertainty.

There is a palpable shift in executive boardrooms, as leaders recognize that they are navigating a new era characterized by unpredictability that may extend well beyond the current renegotiation of trade deals in the United States. Companies can no longer rely on predictable and rational government actions.

The priorities for policymakers are evolving in response to increased geopolitical tensions, emphasizing national security, energy security, and data security.

Multinational corporations are now compelled to undertake costly reorganizations of their supply chains and customer bases, which span multiple continents.

Nvidia, an American semiconductor company, is preparing to take a $5.5 billion hit due to new chip export restrictions imposed by the U.S. government aimed at curbing China’s advancements in AI technology. Meanwhile, Apple is accelerating its plans to shift production of a significant portion of its iPhone models sold in the U.S. to Indian factories as a hedge against potential tariff increases from China, its primary manufacturing hub.

In many ways, businesses are responding to a growing backlash against globalization that has been evident over the past decade, linked to events like the Brexit vote and the rise of populist leaders, such as Trump.

Harvey Schwartz, CEO of Carlyle Group, spoke at the Semafor World Economy Summit in Washington last week, stating, ‘I don’t think people should have been as surprised as they were. Even back a couple of years, you could sense the trends of globalization were retreating, and now we are witnessing policy changes that reflect a new direction.’

Since the beginning of this year, Trump and his advisors have adopted an unexpected approach of creative destruction, rapidly dismantling foundational elements of the existing global order to clear the way for new opportunities.

Brett Bruen, president of the Global Situation Room—a D.C.-based firm specializing in corporate crisis management—asserted this month that the timeline for executives to make strategic decisions is ‘condensing, seemingly by the day, if not by the hour.’

A quarterly reputation index released by an advisory firm after interviewing over 100 senior executives, public affairs leaders, and former government officials identified nearly 100 unique reputational risks confronting businesses. Among these, increasing concerns included the misuse of artificial intelligence, associations with Elon Musk, and the potential rollback of diversity, equity, and inclusion (DEI) initiatives. More than 86 percent of index contributors anticipate that these reputational threats will intensify in the coming quarter.

Commenting on the findings, Frank Washkuch, executive editor of PR Week, noted, ‘Feedback from chief commercial officers and those involved in corporate communications reflects a fundamental question: how do you prepare for any eventuality that could arise? This could be from a Truth Social post or an unexpected news event breaking at an even faster pace than what we experienced during the early days of the Trump administration.’

We are now in a new era filled with heightened uncertainty.

Louisa Clarence-Smith serves as the US business editor.