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In 2024 alone, over 3,000 trade restrictions were implemented globally. This global trend is reflected predominantly in President Trump’s protectionist trade agenda. With their complex international footprint, global companies like Caterpillar, Komatsu, Unilever, Nestlé, BMW, Mercedes, Toyota will either face the impact of tariffs or retaliatory measures. While President Trump’s policies create cost and uncertainty, they also call for adaptation, domestic investment, restructuring, joint ventures, automation, and process innovation. Finally, new climate-related compliance requirements add more complexity to global trade flows with China and Europe.

In February 2025, President Trump reinstated the full 25% tariff on steel imports and increased aluminum tariffs to 25%, eliminating all previous exemptions and alternative agreements. This action expanded the tariffs to include key downstream products and terminated all general approved exclusions. Analysts expect these tariffs to lead to price hikes in vehicles, canned and other consumer products, and construction projects especially. But, if the first round of steel and aluminum tariffs are indicative, U.S. producers generally saw economic gains, job creation, while international companies faced increased costs and market uncertainties. For CPG, Industrial, Automative, and Construction sectors especially, proactive agility and consistent monitoring will be necessary to reduce exposure to global supply chain volatility and increased costs.

With a whole-of-government national security approach, Trump’s America-first policies have intensified competition with China. For good reason, headlines abound on the escalation of trade wars with China – a 10% levy is in effect on goods from China, as well as negotiations with Canada and Mexico -, new tariffs announced on aluminum and steel. What’s falling to the backdrop in his trade policy upheaval, is the neglect of the economic advantages of beating China in renewable tech. Clean energy technology contributed to a record $1.6 trillion to China’s economy in 2023. Consequently, the U.S. and its businesses are losing out on material economic gains.

Jeff Bezos’ relationship with President Trump appears much improved in Trump’s second term, at least at face value. Bezos, now a key global leader in IT infrastructure and cloud, supply chain, e-commerce, and space ventures, attended Trump’s 2025 inauguration alongside other business executives. He has even expressed enthusiasm about the administration’s space agenda. Additionally, he has downplayed concerns over Elon Musk’s ties to Trump, trusting Musk to act in the public interest. The bigger question remains – with so much exposure in its global operations to trade barriers and tariffs, how will Amazon thrive during Trump’s second administration?

With the EU’s deforestation laws coming online this month, CPG and Industrial companies will need to ensure that select commodities in their supply chains do not contribute to deforestation. The commodities scoped into the regulation include wood, rubber, palm oil, soy, beef, cattle, and cacao. In advancing this regulation, the EU aims to reduce its impact on climate change, greenhouse gas emissions, and biodiversity loss. Companies will have to quickly adapt their commercial operations to ensure compliance and think strategically to gain a competitive edge in doing so.

From Paramita Das’s lens as a leading global executive in industrials and critical minerals, we asked her the most pressing questions on the future of ESG and Sustainability. Be it the rise of AI and automation, tariffs, the rolling out of China+1, or other geopolitical issues, business leaders will have to be ready for a myriad of new challenges in 2025 and beyond.