US Protectionism and Export Barriers

US tariffs on Canadian goods, including furniture, cabinets, and biofuel feedstocks, challenge Canadian manufacturers and exporters. Delays or increases in tariffs disrupt business planning, employment, and force companies to seek alternative markets and strategies.

Home Battery Subsidy Rush and Market Impact

Australia’s federal subsidy scheme for home batteries has spurred over 200,000 installations, driving rapid market growth. Imminent changes to subsidy rules are prompting a rush for larger systems, impacting energy storage business models and influencing consumer and commercial investment decisions.

Demographic and Productivity Challenges

Thailand’s ageing population and declining workforce threaten productivity. The government is prioritizing AI, automation, and digital economy incentives to offset demographic headwinds, aiming to sustain growth and attract future-oriented international investment.

Disrupted Agricultural and Export Supply Chains

Ukraine’s agricultural sector remains a linchpin of global food security, but logistics have been repeatedly restructured due to war. Attacks on infrastructure and shifting export routes create volatility in grain and commodity markets, impacting international buyers and supply chain resilience.

Geopolitical Tensions Disrupt Trade

Escalating US–China and US–Venezuela tensions heighten global trade uncertainty, impacting Thai exports, energy prices, and supply chains. Businesses face increased logistics costs and market volatility, especially in energy-intensive and export-oriented sectors, requiring robust risk management and market diversification strategies.

IMF Conditionality and Fiscal Policy Shifts

Pakistan is negotiating with the IMF for relaxed fiscal targets to enable growth-oriented policies. The government seeks to lower power tariffs, reduce super taxes, and improve credit access for SMEs, but faces constraints from IMF-mandated austerity and structural reforms.

AI Industry Expansion and Investment

Driven by government plans to triple AI spending and strong private sector momentum, South Korea aims to become a global AI leader by 2026. This accelerates foreign direct investment, especially in advanced manufacturing and data centers, reshaping supply chains and business priorities.

Infrastructure Investment and Modernization

Ongoing infrastructure upgrades and investment in transport, energy, and border facilities are crucial for Mexico’s competitiveness. However, political tensions and regulatory uncertainty may delay projects, impacting logistics efficiency and long-term business strategies.

Double-Digit Growth Ambitions and Risks

Vietnam targets over 10% annual GDP growth for 2026–2030, emphasizing industrial upgrading, high-tech sectors, and private sector expansion. These ambitious targets attract investment but heighten pressure on infrastructure, regulatory efficiency, and macroeconomic management.

Labor Market and Immigration Policy Uncertainty

US labor market tightness and evolving immigration policies continue to affect talent mobility and operational planning. Businesses face challenges in workforce recruitment, retention, and compliance, with implications for productivity and international assignments.

Global Supply Chain Realignment

US tariff policy has accelerated the diversification of supply chains away from China, with countries like Indonesia and Thailand seeing import growth of 34% and 28% respectively. Businesses are reconfiguring sourcing and logistics, impacting investment strategies and operational resilience.

Rare Earth Supply Chain Vulnerabilities

Japan’s heavy reliance on Chinese rare earths—still 60-70% of supply—faces new threats as Beijing considers tighter export permit reviews. Prolonged restrictions could cost Japan up to $17 billion annually, impacting global supply chains for EVs, electronics, and defense.

Supply Chain Resilience and Diversification

Thailand has gained sourcing share as global supply chains diversify away from China, with U.S. imports from Thailand rising 28% in 2025. However, new trade regulations, such as the EU’s CBAM, and stricter U.S. origin verification are increasing compliance burdens for exporters.

Political Uncertainty and Budget Delays

Delays in passing Taiwan's defense budget threaten procurement, maintenance, and deterrence capabilities. Legislative gridlock could undermine Taiwan's military readiness and resilience, increasing vulnerability to external pressure and affecting long-term business stability and investment planning.

Fiscal Policy and Tax Reform Uncertainty

South Africa faces potential tax increases, including VAT and digital economy taxes, to address revenue shortfalls. Fiscal consolidation and improved ratings have boosted investor sentiment, but persistent debt and policy uncertainty could impact future investment strategies and operational costs.

Surging Exports and Trade Surplus

Indonesia’s exports rose by 5.61% to US$256.56 billion in 2025, driven by non-oil sectors like electrical machinery, chemicals, and nickel. The resulting US$38.54 billion trade surplus strengthens macroeconomic stability and enhances Indonesia’s role in global supply chains.

Heightened Geopolitical and Security Risks

The risk of military escalation is acute, with the US considering strikes and Iran warning of readiness for conflict. Regional instability, including weakened alliances and ongoing tensions with Israel and the US, increases operational risk for businesses and investors in the region.

USMCA Review and Trade Uncertainty

The 2026 USMCA review is creating significant uncertainty for North American supply chains, especially as US President Trump has called the deal 'irrelevant' and threatened not to renew it. This could disrupt tariff-free trade, impacting automotive, electronics, and agricultural sectors.

Supply Chain Realignment To Vietnam

Vietnam’s strategic location and integration into FTAs have made it a preferred destination for supply chain shifts, especially from China and other Asian economies. This trend enhances Vietnam’s industrial capacity and global competitiveness, but also increases exposure to external shocks.

Organized Crime and Investment Risk

Persistent organized crime and cartel activity, especially in key states like Michoacán, continue to pose operational and security risks. Despite increased arrests and bilateral cooperation, extortion, violence, and supply chain disruptions remain significant concerns for international investors.

CPTPP Accession and Trade Policy Shifts

South Korea is actively pursuing membership in the CPTPP to diversify trade and reduce reliance on China. Progress is hindered by Japan’s conditions, such as easing seafood import bans, reflecting the complex interplay of trade, public sentiment, and regional politics.

Energy Security and Diversification Drive

Major investments in natural gas, renewables, and nuclear projects are underway, including Sakarya Gas Field expansion and offshore drilling in Somalia. Partnerships with global energy firms and increased domestic production aim to reduce import dependency and stabilize energy costs for industry.

Labor Market Transformation and Data Challenges

Saudi Arabia has doubled women’s labor participation and created 800,000 jobs, but conflicting labor data and rising unemployment rates raise concerns about policy effectiveness and workforce sustainability. Reliable labor statistics are critical for business planning and investment decisions.

TSMC’s Global Expansion and AI Boom

TSMC, the world’s largest chipmaker, is expanding with new US plants and record capital expenditure, driven by surging AI chip demand. This cements Taiwan’s centrality in advanced technology supply chains but also increases exposure to geopolitical and operational risks.

Infrastructure and Supply Chain Modernization

Record export volumes highlight Brazil’s need for continued investment in logistics, ports, and supply chain resilience. Upgrades are crucial to sustain growth, reduce bottlenecks, and meet rising international standards, especially as trade volumes approach US$700 billion in 2026.

Critical Minerals Supply Chain Security

Australia is rapidly developing a $1.2 billion strategic reserve for critical minerals such as rare earths, antimony, and gallium. This initiative aims to reduce reliance on China, attract investment, stabilize supply chains, and position Australia as a global leader in critical minerals for technology, defense, and clean energy.

Strategic Autonomy and Economic Sovereignty Push

President Macron is urging the EU to strengthen strategic autonomy in response to external pressures, particularly from the US. France advocates for robust EU trade defense tools and reduced dependence on foreign markets, aiming to protect critical sectors and enhance economic sovereignty.

Export-Led Growth Under Global Pressures

Vietnam’s export-driven economy faces mounting US tariffs (up to 20%) and EU trade measures, threatening key market access. The government is actively diversifying export destinations to mitigate risks, but global trade tensions remain a significant operational challenge.

Energy Transition and Biomass Expansion

Indonesia’s PLN EPI is scaling up biomass supply to reduce coal use in power plants, aiming for lower carbon emissions and sustainable energy. Strategic partnerships and regulatory compliance are central, impacting energy sector investments and ESG-focused supply chains.

Stricter Migration and Student Visa Policies

Australia has moved India, Nepal, Bangladesh, and Bhutan to the highest-risk category for student visas, increasing scrutiny and documentation requirements. This policy shift affects international education revenues, skilled migration pipelines, and labor market flexibility, especially in sectors reliant on foreign talent.

Critical Minerals Access and Infrastructure Gaps

Greenland’s mineral wealth offers major supply chain opportunities, but extraction is hindered by lack of infrastructure and skilled labor. International investors face high entry barriers, regulatory uncertainty, and potential political disruption, impacting resource strategies and industrial planning.

Sanctions and Export Controls Expand

The US has expanded outbound investment regulations and intensified sanctions enforcement, especially targeting technology, energy, and strategic sectors. These measures complicate compliance and restrict market access for international firms.

Energy Infrastructure And Mineral Scarcity

US energy transition faces hardware constraints, including transformer and copper shortages, and dependence on Asian imports. Private energy islands and methane pyrolysis are emerging, but mineral security and grid bottlenecks threaten reliability and cost for global supply chains.

Downstream Bauxite Industrialization Push

Indonesia is entering a crucial phase of bauxite downstream processing, aiming to strengthen domestic alumina and aluminium industries. This shift reduces raw ore exports, supports supply chain resilience, and positions Indonesia as a key global supplier for multiple sectors.

Regional Security and Military Risk

US and Israeli military actions, including strikes on Iran’s nuclear facilities, and threats of further intervention, heighten regional tensions. The risk of conflict escalation or disruption of the Strait of Hormuz threatens global shipping and energy flows.

Western Sanctions Reshape Trade Flows

Sweeping US, EU, and UK sanctions have forced Russia to reroute trade toward China, India, and other 'friendly' nations, now accounting for 86% of Russian trade. This realignment disrupts global supply chains, complicates compliance, and increases operational risks for international businesses.