EuroFinance

As new tariffs and shifting trade policies disrupt the global business environment, treasury teams are leading in managing risk and protecting margins. For multinational companies, tariffs represent more than just increased import costs, they trigger a chain reaction that affects supply chain structures, cash flow stability, foreign exchange exposure, financing needs, and access to critical raw materials.

In this environment, treasury leaders are developing proactive strategies to maintain financial resilience, optimise liquidity, and guide operational agility in a world where trade dynamics are unpredictable.

Kumar Ayashkanta, former Vice president of treasury and finance at Wipro, an Indian multinational technology company and Sugandha Singhal, Senior vice president and head of treasury at SRF, an Indian multi-business chemicals conglomerate engaged in the manufacturing of industrial and specialty intermediates -shared their perspectives on how companies should respond.

Tariffs as a catalyst for strategic treasury action

According to Ayashkanta, Trump’s tariff push is set to reshape global supply chains. “Key impacts include increased costs on imported goods, potential supply chain disruptions due to sourcing shifts, greater price volatility, a drive to relocate production, retaliatory tariffs harming exporters, and higher administrative burden,” he said. Automotive and manufacturing industries are particularly vulnerable, Ayashkanta noted.

To navigate this uncertainty, Ayashkanta recommends diversification, agility, and technology-driven planning. “Companies should consider diversifying supply chains, leveraging technology, enhancing agility, and engaging in scenario planning,” he said. “Ultimately, these tariffs are pushing businesses to fundamentally rethink their global supply chain strategies.”

Tariffs directly risk margins, especially for organisations relying on global sourcing, according to Ayashkanta. “Treasury must aggressively mitigate tariff-induced margin pressures beyond price transmission,” he explained.

FX strategies to trade-driven volatility

Trade friction feeds directly into FX volatility-and treasurers must respond with smarter strategies. “Treasuries should employ dynamic hedging, potentially utilising structured products and option strategies for enhanced protection,” Ayashkanta advised.

He also emphasised real-time monitoring of macro events and proactive hedging of long-term exposures. “Particularly in currencies with solvency risks, long-term positions should not be left open. Surveillance of geopolitical events is essential.”

Technology and survival shifts

At SRF, Singhal sees technology as essential-not optional. “Tariff or no tariff, we have been moving towards leveraging technology for agility and risk management,” she said. “It’s not a choice anymore, but a question of survival.”

Treasury teams, she noted, must operate with greater speed, clarity, and flexibility, especially when facing unpredictable trade policy shifts.

SRF is also considering alternatives to traditional financing. “We are already using digital and off-balance sheet structures to mitigate the risk of over-relying on traditional trade finance methods,” Singhal explained. “We are currently looking at alternatives and seeing how fast we can switch.”

No playbook for commodity volatility

When asked how her team is managing the additional burden of commodity price volatility and critical raw material shortages, Singhal added, “with so much fluctuation, the reality is we cannot plan.”

“While we may think of something as an alternative, in reality it might become problematic depending on geopolitical reality. We are taking one step at a time and will wait for the dust to settle.”

Despite uncertainty, treasury plays a key role in geopolitical risk management. “We use the network to quickly gather the best ideas,” said Singhal. “We’re finding ways to quickly activate solutions for shifting supply chains and ensure liquidity and continuity.”

Strategic command centre

The tariffs under President Trump have brought back familiar challenges-but this time, treasury teams are better prepared. With tools ranging from scenario-driven forecasting and real-time FX hedging to digital financing and network collaboration, corporate treasury is no longer just managing trade risk, it’s helping define the business response.

As Ayashkanta and Singhal make clear, agility, preparedness, and strategic insight will define the treasurers who lead through the next era of trade instability.