Source: ITR Economics Now part of CROWE – May 2025
How can leading with optimism and positivity help you through uncertain times with challenges like tariffs and supply chain disruptions? Find out here!
Two imperatives we give business leaders, particularly in times of uncertainty, are “lead with optimism” and “model positive leadership.” We are not advising you to put a smile on your face and go about your day despite all warning signals.
Optimism in this case means you can identify a path forward and a way to make it work. It is the only way to effectively lead your company during the inevitable difficult times.
Difficult Times?
Tariffs, which are for the time being still on-again/off-again, have the potential to make the near-term future one of those “difficult times” for some businesses.
“Some” is an important caveat, because we expect overall US Industrial Production to rise this year and beyond despite the ongoing trade turbulence. In addition, numerous domestic markets and businesses stand to benefit from tariffs as the higher duties price out competing imported goods.
If you are one of those that stands to benefit from tariffs, then you have reason to be optimistic, but be careful:
- In the long term, your customer relationships are likely to be more important to the success of your business than whether or not the current government has designated your market a “winner.”
- You will likely have the opportunity to increase your prices in response to demand shifting away from the potentially cost-prohibitive imported alternatives.
- Balance any margin-related decisions with a clear analysis of your market share, current and future. What price increase is an understandable response to market forces? Where is the line, beyond which customers will perceive themselves as being taken advantage of?