It has become a question of survival rather than growth for business - João Paulo da Silva

This is not a sign of retreat – it is a recalibration. The smartest companies are not simply bracing for impact; they are finding ways to turn resilience into a competitive advantage.

One of the most immediate risks to profitability in 2025 is trade tariffs. Even before recent announcements, our research found that 35 per cent of chief financial officers (CFOs) cited new and upcoming tariffs as a top threat to their margins. Given the latest developments, that number has likely doubled – if not tripled.

Tariffs are no longer just an economic policy – they have become a political bargaining tool. The uncertainty surrounding trade policy is often more damaging than the tariffs themselves, as businesses struggle to plan for changes that may come at any time, with little warning.

The latest US tariffs on Canada and Mexico – and the possibility of further action against the EU – are already reshaping global supply chains. Businesses will be forced to rethink sourcing strategies, adjust trade routes and consider new market opportunities to avoid being caught in the crossfire of policy shifts.

In an environment of rising costs and unpredictable trade policy, business leaders must focus on what they can control – how and where they spend.

Our research finds that more than half of businesses, 59 per cent, are turning to artificial intelligence (AI) and automation to build resilience, using intelligent systems to forecast risks, streamline procurement and maximise efficiency. Instead of waiting to react, businesses are using technology to scenario-plan multiple trade outcomes and mitigate supply chain disruption before it happens.

With AI-powered procurement tools, businesses can identify savings opportunities, prevent unnecessary spending and automate sourcing decisions based on real-time market conditions.

Financial visibility is paramount too. Businesses need to track spending at a granular level, anticipate cash flow pressures and identify areas where efficiencies can be gained.

While businesses cannot control external forces like tariffs or inflation, they can control how they respond. The most resilient organisations in 2025 will be those that embrace AI and automation to drive efficiencies, reduce operational costs and improve decision-making. Diversify supply chains to avoid over-reliance on high-risk trade routes. Strengthen supplier relationships to build more adaptive, flexible procurement strategies. And prioritise cost control not as a defensive strategy, but as a proactive means of improving agility.

This year will be an important one for companies worldwide. Those who view cost efficiency as a strategy asset, rather than just a necessity, will be the ones that thrive in an uncertain future.

João Paulo da Silva is regional President for EMEA and APAC at Coupa.