How Rising US Tariffs Are Shaping Global Business Strategy: Insights from Vistage CEO Roundtable at MC Crenergy

🌐 Key Highlights: Global Economy & Tariff Trends

Mr. Kerk kicked off the session by diving into current global trade shifts and US-China tariff tensions. Since 2016, foreign investment into ASEAN has seen a major surge, largely due to China’s strategy of relocating its industries in response to rising wages and potential US sanctions.

This discussion emphasized on how’s the latest US tariff policies create difficulty to China from bypassing sanctions through third-party countries, triggering a trade war that is now affecting the entire global supply chain. With the US now imposing high tariffs on Chinese goods, businesses worldwide are starting to feel the pressure.

📉 Could a Global Recession Be Coming?

Participants were especially intrigued by updates on the gold and bond markets. The demand for gold has risen significantly, fueled by inflation fears, interest rate changes.

At the same time, China is steadily reducing its holdings of US Treasury bonds, raising concerns about the US government’s ability to manage its trillion $ debt.

Hence, the forecast is cautionary. Mr. Kerk noted that the US economy may be heading toward a major downturn with some economists even warning of a crisis worse than the Great Depression of the 1930s. If China and the US can’t stabilize their trade relationship, the World Trade Organization estimates a 7% loss in global GDP.

China, meanwhile, is facing slowed growth, with institutions like the IMF lowering its forecast to between 4.2% and 4.7% for 2024, while also highlighting the declining role of the US dollar as the world’s reserve currency.

📊 What Should Businesses Do Next?

To help CEOs prepare for uncertain times, Mr. Kerk sharing few practical strategies that every organization should consider to remain sustainable and resilient:

Avoid aggressive expansion – Be cautious with capital investment.

Control inventory – Don’t let too much cash sit in your stockroom.

Strengthen credit management – Ensure your customers pay on time.

Reduce admin expenses – Optimize operational costs.

Manage manpower – Set clear KPIs and control salary growth.

Invest carefully – Avoid high-risk stocks and assets.

Choose your customers wisely – Focus on reliable, profitable clients.

Minimize borrowing – Reduce exposure to bank loans and financial risks.

He also encouraged all business leaders to keep an eye on five key indicators: US bonds, the US dollar, inflation, global commodity prices, and geopolitical developments.

🗣️ Final Thoughts

During the Q&A session, CEOs actively discussed China’s long-term preparedness, the impact of political decision-making in both China and the US which may impact on our (Malaysian) and global markets, and how these macroeconomic trends influence local business strategy. Therefore, all local businesses must stay alert, manage risk wisely, and plan ahead strategically to survive and thrive in a volatile global economy.

During the engaging discussion, C-level participants openly shared their thoughts, challenges, and outlook for their respective industries. The economic insights and tariff updates presented by Mr. Kerk sparked meaningful conversations, helping everyone better understand how global trends are already impacting Malaysian businesses. Our CEO, Mr. Ming Chuan, also shared his views and highlighted MC Crenergy’s business direction and performance following the tariff and economic analysis after the tariff briefing & discussion.

The session ended on a high note, with all participants expressing appreciation for the smooth event flow and thoughtful meeting & food arrangements by the MC Crenergy team. It was a fruitful and enlightening experience, leaving everyone more aware of the current global economic landscape.

As the world economy continues to shift, all CEOs left the session feeling better equipped and motivated to develop stronger, forward-thinking business plans and be ready to adapt and grow in this fast-changing environment.

Keywords : Global Economy, US Tariffs, Business Strategy, Vistage Malaysia, Supply Chain