Trump, tariffs and the new world order

Charting a Course: Business Strategies Amidst Global Trade Uncertainty and Shifting Power Dynamics

(This article was generated with AI and it’s based on a AI-generated transcription of a real talk on stage. While we strive for accuracy, we encourage readers to verify important information.)

At Web Summit Lisbon 2025, a panel moderated by Ms. Anna Johnson discussed the profound impact of trade, tariffs, and the Trump administration on the global economic landscape, highlighting the need for strategic adaptation.

Mr. António Leitão Amaro, Minister of the Presidency, highlighted Portugal’s strategic focus on stability, rule of law, and robust economic growth, marked by low unemployment and significant public debt reduction, making it an attractive investment destination.

He detailed improved business conditions, including tax reductions, streamlined bureaucracy, and digitalization. Portugal leverages its prime geographic location, abundant renewable energy, and advanced digital infrastructure to support economic activity.

The nation actively cultivates domestic digital talent and attracts skilled international workers with favorable tax incentives and high quality of life. Portugal positions itself as a crucial bridge-builder in global relations, fostering diverse connections.

Professor William Hurst analyzed US-China relations as inherently competitive in both security and trade, a dynamic intensified by the Trump administration’s aggressive tariff policies, creating a challenging international environment.

China endeavors to project an image as a responsible champion of open trade, gaining influence in the global South as the US recedes from its traditional role in shaping international economic institutions and frameworks.

The US is actively undermining the global economic institutions it once established. Consequently, China and other nations are either bolstering existing frameworks or creating new ones aligned with their own interests and visions.

Ms. Angeli Patel advised businesses, particularly startups, to prioritize diversification across supply chains, customer bases, and talent pools to navigate trade uncertainties effectively and build resilience.

She cited TSMC’s substantial US investment as an example of corporate adaptation to policy shifts. Companies must conduct “single point of failure” audits and implement multi-pronged strategies for sustained resilience.

Professor Hurst identified Southeast Asia and Africa as the primary engines of future global economic growth, presenting significant expansion opportunities for forward-looking businesses seeking new markets and talent.

American AI innovation faces hurdles from tariffs and difficulties in attracting top international talent. US companies are increasingly relying on their global innovation hubs to circumvent these domestic challenges.

While economic cycles are historical, Professor Hurst suggested the erosion of US-led global institutions may be permanent. Future global economic frameworks will likely be designed and governed by a broader array of international actors.

Ms. Patel encouraged companies to actively participate in policy discussions by joining trade organizations and advocating for their industry’s interests, ensuring their voice is heard in policy-making.

Minister Amaro invited businesses to invest in Portugal, emphasizing its stability and role as a hub for global connections. He stressed the importance of listening and engaging with other nations to build international bridges and foster cooperation.