The global trade environment has entered a period of structural transformation, moving away from periodic disruptions toward a state of continuous, high-impact volatility. According to the 2026 Global Trade Report, trade professionals are currently facing a convergence of economic and regulatory pressures that threaten traditional business models and demand a fundamental revaluation of the trade function’s role within the enterprise.
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The Central Catalyst: Tariff Volatility
The primary problem dominating the current landscape is the unprecedented rise and volatility of tariffs, particularly those instituted by the United States in 2025. This shift has fundamentally recast the trade environment, moving tariffs from a manageable cost factor to a dominant strategic risk. Key data points include:
- 72% of trade professionals rank U.S. tariff volatility as the most impactful regulatory change, a significant increase from 41% the previous year.
- 76% of respondents believe these new tariff regimes represent a permanent structural change rather than a transient political tool.
- The cascading effects of these tariffs extend beyond financial costs, forcing a complete overhaul of supply chains, procurement strategies, and competitive positioning.
Threats to Business Profitability
The financial burden of the new tariff landscape is creating acute pressure on corporate margins. Organizations are struggling to manage the increased costs of imported raw materials and components, which has led to a dilemma regarding cost absorption. Approximately 39% of companies report they are considering or already absorbing these increased costs rather than passing them on to customers, a threefold increase from previous years. This trend suggests that competitive market pressures are limiting the ability of firms to maintain profitability through price adjustments alone.
Supply Chain Fragility and Reliability
Supply chain management has surged to become the top strategic priority for 68% of trade professionals, nearly doubling its importance from the prior year. The “problem” has shifted from day-to-day logistical optimization to a desperate need for systemic resilience. Specific challenges include:
- Sourcing Disruptions: 65% of businesses are being forced to change sourcing patterns to reduce tariff exposure.
- Quality Risks: Shifting to alternative suppliers based on tariff considerations rather than quality criteria risks degrading product standards and alienating customers.
- Logistical Complexity: Tariffs have introduced significant uncertainty in shipping and procurement, raising logistical costs and making exporter agreements harder to maintain.
Mounting Regulatory and Compliance Burdens
The impact of tariffs has triggered deeper government intervention in supply chain transparency. Trade departments are now facing a substantial increase in documentation volume and complexity. There is a heightened premium on trade accuracy and defensibility due to more frequent inspections and secondary verification requirements. These regulatory hurdles often lead to delays in planning and execution, impacting overall project schedules and business operations.
Internal Operational Pressures
The strategic elevation of the trade department has come at a high human cost. As trade functions move from back-office compliance to frontline risk governance, existing teams are facing unsustainable workloads. Over half (56%) of trade professionals report increased workload and overtime requirements, while 49% cite elevated stress and pressure on their teams. Furthermore, organizations must now “operationalize” these shifts by embedding strategic collaboration into formalized processes, moving away from the ad hoc responses that characterized previous years.
Secondary Regulatory Challenges
While tariffs are the dominant concern, trade departments must simultaneously navigate a host of other complex issues:
- Export Controls: Expansion of restricted lists for advanced technology and military end-users.
- Environmental Mandates: The implementation of the Carbon Border Adjustment Mechanism (CBAM) and other sustainability regulations.
- Digital Standards: New requirements for data residency and the emergence of digital product passports.