US Tariffs in Focus: A Pulse Check With ProcureCon Asia Speakers
As new waves of U.S. tariffs loom, procurement leaders across Asia are reassessing risk exposure, pricing resilience, and supplier agility—not in response to a single market shift, but a growing web of uncertainty.
Ahead of ProcureCon Asia 2025, we checked in with our speakers to understand how these developments are reshaping procurement thinking in real time. Their responses—grounded in both caution and recalibration—shed light on how inflationary pressures, raw material costs, and supplier diversification are being re-evaluated across industries.
Rising Complexity: It’s Not Just About Finished Goods
While headlines often focus on direct tariffs applied to U.S.-made goods, procurement teams are digging deeper into the indirect consequences—especially around upstream material sourcing.
“The ripple effect of tariffs isn’t just about where finished goods are coming from. It’s about where raw materials originate, and how that impacts supplier cost structures.” noted one leader.
This complexity is pushing procurement teams to operate with heightened vigilance, tracking supply chain exposures not just by geography, but by infrastructure dependencies—especially in categories like software and digital services, where indirect cost pass-throughs are harder to model.
Inflation Pressure and the Sustainability of Absorbing Costs
Most leaders agreed: while price hikes may be delayed, they are ultimately unavoidable.
“We’ve held back on price adjustments, but it’s only a matter of time. At a certain point, it becomes unsustainable for all parties—especially with inflation hitting hard.”
As firms weigh how much of the cost increase can be absorbed versus passed on, there’s a growing focus on proactive scenario planning and financial modeling. The goal is not just short-term mitigation—but long-term sustainability amid continued macroeconomic turbulence.
Strategic Responses: Diversification, Flexibility, and Regional Strength
Across the board, procurement strategies are being recalibrated to respond with agility, not just defensiveness. Several leaders outlined tangible actions already underway:
- Diversifying sources to reduce exposure to heavily impacted regions
- Reevaluating contract structures for greater flexibility around pricing and delivery terms
- Exploring disruptive local and regional suppliers with scalable capabilities and lower volatility
One speaker emphasized how the tariff environment has created an opportunity to rethink partnerships altogether:
“We’re accelerating supplier optimization and shifting toward regional partners who offer cost-effective solutions with fewer exposure risks. This is helping us build a more resilient supply chain that’s less reliant on U.S.-based components.”
Looking Ahead: Procurement as a Real-Time Market Sensor
What’s clear is that procurement teams are no longer just executors—they’re early warning systems for global risk. As one executive shared:
“Procurement needs to stay close to market movement and adapt to emerging norms. These tariffs aren’t isolated; they’re part of a broader realignment that will affect everything from cost models to supplier relationships.”
As the global trade landscape continues to evolve, these early insights offer a timely snapshot of how Asian procurement leaders are responding—not with panic, but with precision and preparedness.
On that note, how prepared are you for what’s ahead? The tariffs conversation will continue at ProcureCon Asia – if you’re looking to benchmark your decisions, there’s no better place than a gathering of over 200 procurement leaders behind the biggest organisations in Asia.
Get the agenda to see the full speaker roster that you’ll get to personally meet.