Global companies are once again adjusting to shifting trade rules after President Trump announced a fresh round of U.S. tariffs under what he called a “Declaration of Economic Independence”. The policy introduces a universal 10% tariff on all imports along with higher reciprocal tariffs on select countries. This move is expected to raise costs and disrupt supply chains which could directly affect how multinational firms use Global Capability Centres or GCCs across regions.
The tariff structure is wide ranging. China faces a 34% duty which could rise to 54% when earlier measures are included. Vietnam stands at 46% and Taiwan at 32% while Thailand faces 36%. Japan has been hit with 24% and South Korea with 25%. The European Union faces 20% and the United Kingdom is estimated at 18% to 20%. India stands at 26% while Mexico is expected to see 25% to 30%. Brazil faces 20% to 25% and Australia 15% to 20% while Canada may see 18% to 22%. These higher rates could reduce the appeal of some manufacturing hubs and push firms to rethink sourcing and production models.
As supply chains are reshaped GCCs are likely to take on a bigger role. Companies may rely more on these centres for cost analysis vendor transitions compliance support and R and D localization. Rising input costs from the 10% baseline tariff could also accelerate automation process optimisation and advanced analytics where GCCs already play a key role. India despite facing export pressure could strengthen its position as a preferred GCC hub due to its skilled workforce and cost advantages.
The tariffs may also influence long term investment decisions. Businesses could redirect spending toward regions with more stable fiscal conditions across Asia Latin America and Africa. At the same time the disruption may act as a catalyst for faster digital transformation as firms seek efficiency and resilience. While the policy aims to boost domestic manufacturing in the U.S. the broader impact could redefine how GCCs support global operations in an increasingly complex trade environment.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream formerly known as CIO News LinkedIn Account | The Mainstream formerly known as CIO News Facebook | The Mainstream formerly known as CIO News Youtube | The Mainstream formerly known as CIO News Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.
