Two themes, both riddled with uncertainty, dominated the conversations at the World50 Connect and Recognize CEO Innovation Network event —tariffs and artificial intelligence.
I attended both events, and these forums provided a timely and unfiltered look at the strategic concerns occupying the minds of today’s C-suite leaders.
Tariffs: The Unforeseen Risk CEOs Must Act On
A former senior advisor in the Trump administration, opened the World50 with a fireside chat focused on tariffs, trade policy, and the ripple effects across global commerce.
One moment stood out. The CEO of a Fortune 100 company asked a direct question: “What is the objective of the tariffs and when will final decisions be made?”
There was no clear answer.
If a leader with as much global exposure as this cannot see the path forward, it confirmed the profound uncertainty that many in the room were feeling.
Fundamental Issues: Supply Chain Disruptions and Unclear Objectives
The tariff and trade policy discussions are beyond abstract geopolitical issues. They have immediate, tangible impact on supply chains, investment decisions, and financial markets.
These are the pitfalls CEOs must recognize:
- Critical Materials Dependency: Key industries, including manufacturing, aerospace, and defense, are heavily reliant on materials like tungsten, rare earth metals, and specialty metals, most of which are controlled by China. No amount of reshoring U.S. manufacturing will succeed if access to key materials is blocked or restricted.
- Supply Chain Fragility: U.S. and Western manufacturers remain deeply interconnected with Chinese suppliers, often without full visibility into second and third-tier dependencies. Decoupling will be a costly and complex process, not a fast shift.
- No Clear Policy End-State: Conversations with policy leaders revealed little in the way of defined success metrics or final objectives for tariffs. Without an articulated endgame, businesses cannot scenario plan effectively and reactive policymaking becomes the new norm.
- Sovereign Wealth Divestment Risk: We are seeing the early signs of international sovereign wealth funds beginning to pull capital out of American markets. The growing perception of U.S. political and economic unpredictability is forcing sovereign funds to diversify away from traditional U.S. assets, increasing market volatility.
CEOs Must Act and Control What They Can
In recent years, there has been a posture of “wait and see”. Wait and see when the rates will lower. Wait and see what the talent market will do. Wait and see where companies will deliver value. Waiting for clarity is not an option. There are three areas of influence: macro, market, and organization. Leaders must rethink and design their organization for strategic flexibility now.
Here’s where CEOs should focus
- Prioritize Targeted, Resilient Growth: Industries that are heavily exposed to tariff risk, such as industrial manufacturing, are facing significant turbulence. CEOs should refocus growth efforts toward sectors and ICP’s that are less vulnerable to supply chain disruptions and international trade volatility. In uncertain environments, industry selection becomes a critical growth lever.
- Stay Flexible with Strategic Bets: In a world where final tariff outcomes remain undefined, CEOs must retain flexibility, keeping strategic investments light, reversible, or modular whenever possible.
- Recognize Shifting Capital Flows: Early signs of sovereign wealth funds reallocating away from U.S. markets highlight the growing importance of risk-adjusted growth. CEOs should expect higher volatility in financial markets and build capital allocation plans accordingly.
- Absorb Uncertainty Upward, Push Clarity Downward: Bring a level of certainty and a path forward to your team, regardless of the uncertainty you may be feeling.
Bottom line: Doing nothing is not an option. In today’s climate standing still is choosing to expose yourself to risks you cannot afford.
Strategic Clarity Matters More Than Ever
Whether tariffs, AI, or broader macroeconomic shifts, the lesson is the same.
Hope is not a strategy. As the world changes rapidly, the companies that will win will be those who invest in clarity, move with speed, and execute relentlessly.
The conversations at World50 and Recognize CEO Innovation Network only validated what we already see and feel. 2025 is not about predicting the future. It’s about designing companies that can win no matter the conditions.
To understand how CEOs are navigating uncertainty, SBI surveyed 120 CEOs and commercial leaders as part of its quarterly pulse of market trends, growth strategies, execution successes and performance gaps. Review the research here.
