The previous year was no easier. Manufacturers have faced higher costs since Trump’s initial tariff announcements in April.
“It was a big slap in the face when the tariffs were announced,” said Tomi Mäkelä, general manager of Thailand’s Lanna Clothing, a garment exporter.
Clients renegotiated or cancelled orders before shipments could go out, Mäkelä added, amid the uncertainty.
“I can’t eat the cost forever,” Mäkelä said. “So I need to increase the price.”
Pricing is also the central problem for Sharma’s Haldy brand.
“If you don’t know what your final costs will be,” Sharma said, “the cost of doing business becomes very difficult because you can’t price your products.”
Lynsey Lim, founder of Singapore skincare brand Handmade Heroes, said tariffs were making companies focus less on pricing, and more on efficiency and diversifying beyond the US market.
“Early feedback suggests that uncertainty – rather than the headline tariff rate – is the bigger drag on business confidence,” Kok Ping Soon, chief executive, Singapore Business Federation said.
“Businesses can plan for a known cost increase, but they struggle when the target keeps moving, and some are holding back on major investment and routing decisions as a result.”
Some companies are now changing their strategies entirely.
Haldy has expanded retail operations in Malaysia and has begun exploring markets in the Middle East.
“I’ve made a conscious decision to look at things that are within my control,” Sharma said.
Mäkelä of Thailand’s Lanna clothing is ramping up the firm’s business in Canada and looking to Australia and Europe for new customers.
