How tariff chaos creates opportunities for nimble companies 

It is said that in the middle of every crisis, there's an opportunity. This philosophy could certainly apply to today's tariff chaos. Journalists love to shout about tariff unpredictability and trade wars, but forward-thinking C-suite executives would be wise to pay little attention to the chatter. 

Instead of fretting about the current wave of protectionism, where varying tariff rates are bandied about like playthings, mid-market company leaders can quietly position their organisations to capitalise on the strategic opportunities ahead. What better time to pivot, forge new partnerships, and capture slices of market share than while bigger competitors have their collective heads in their hands? 

The current state of trade volatility: disruption as a competitive advantage 

Recent US presidential actions have led to reciprocal tariffs in the name of new tax revenues and to address trade deficits. However, these actions have fundamentally shifted the global trade environment from a position of stability to one of almighty flux. Importers and exporters don't know what to do, and almost 90% of goods-producing firms expect shortages, product delivery delays, and even higher raw material costs. 

Multinational companies with entrenched supply chains dispersed across several countries are prone to struggle in this environment. One report states that between 2017 and 2024, almost 3,500 global companies lost a combined $320 billion in EBITDA because of geopolitical volatility. Only a small fraction of companies were able to gain profitability by acting quickly.  

Shrewd leaders understand that this trade volatility will likely continue. They're figuring out how to reconfigure their companies' operations to capitalize on new investment trends, like nearshoring and friendshoring, that have emerged.  

The bottom line: Companies that strategize carefully and move more swiftly than their competition will emerge stronger, while those who may be waiting for common sense to prevail may become marginalised. 

The business opportunities hidden within tariff disruption 

There are a few clear opportunities for businesses agile enough to navigate the ever-shifting sands of the trade war:
 

Emerging opportunities with newly accessible players 

Over the decades, traditional trade routes have been dominated by established players. However, the situation is rapidly fragmenting to create openings in markets that were previously thought to be inaccessible.  

For example, some companies can't afford the new tariffs on Chinese goods and have sought out alternative suppliers in Mexico, Vietnam, or Eastern Europe. Those alternative suppliers might be struggling with the sudden spike in demand, but now is the time to initiate conversations. Establish relationships with them to secure good pricing and preferential terms — and remember that larger competitors are trying to turn their ships around too. 

In the US, around half of the 16 million cars bought last year were imported. With tariffs completely upending this complicated landscape, shrewd component manufacturers will now position themselves as domestic alternatives, enabling them to capture some contracts that would previously have been out of reach. 

Partnerships with struggling upstream enterprise companies 

Don't rule out partnership opportunities with larger corporations, whose leaders are scrambling for ideas. They'll be desperate to maintain their operations and may actively seek out mid-market partners who come with some inherent flexibility.

This may not be a traditional vendor relationship but more of a strategic partnership, granting your business access to enterprise-level distribution networks, broader customer bases, and new technology platforms.  

The key is to position your company as a strategic capability enhancer, rather than just a cost-cutting alternative. You may be able to offer them solutions that they can't match elsewhere. 

Taking advantage of new market segments 

Bigger corporations are starting to consolidate, and this means shrugging off market segments that may be too complex or too small. Your mid-market company may be well positioned to pick up some of this debris. If you're willing to accept the challenge, you could uncover a goldmine.  

For instance, regional companies may now be seeking local solutions, as they may no longer have realistic access to global supply chains. The way to win here is to compete on flexibility and speed, not on scale. 

How to build your resilient international strategy 

The way forward may not be as complex as you think. In order to successfully navigate this turbulent landscape, consider the following strategies: