Tariff Shocks Trigger Low Action Thresholds for Asia Pacific Supply Chain Overhauls

Key facts

• Nearly half of Asia Pacific businesses are prepared to execute comprehensive overhauls of their supply chains when tariff-related cost increases hover between 21% and 40%, revealing a significantly lower threshold for C-suite intervention
• According to Deloitte’s 2025 Asia Pacific Tax and Tariff Complexity Survey, released on Thursday, an additional 41% of corporate leaders would initiate significant supply chain realignments even if cost escalations remained below 20%.
• Over 80% of companies currently rely on a revenue buffer within 40% of existing tariff-related expenses to absorb cost shocks.
• This low tolerance for tariff adjustments has forced a strategic recalibration in the C-suite, with 70% of business leaders indicating that their primary supply chain focus has transitioned from cost minimisation to prioritising
• Conversely, a mere 16% of respondents continue to prioritise the lowest-cost provider when managing their logistics networks.
• More than half of those surveyed (51%) identified operational challenges arising from internal gaps, specifically highlighting insufficient processes, limited data capabilities, and critical skill shortages.