According to a comprehensive 2025 survey conducted by HSBC, over a third of Asian companies are shifting their trade focus towards South Asia and Europe, while more than a quarter are scaling back their dealings with North America. The poll, encompassing over 2,750 international firms across seven Asian markets, reveals a striking trend: around 83% of respondents have begun reevaluating their long-term business strategies in light of recent changes in trade policies.
This seismic shift in approach is fueled by a pervasive sense of uncertainty, with 81% of businesses expressing increased caution regarding expansion and investments. Amid these challenges, many Asian firms are bracing for an average revenue decline of 18% due to persistent supply chain delays. Aditya Gahlaut, the region head of Global Trade Solutions, Asia at HSBC, notes, “In the face of trade uncertainty, numerous companies are hitting the pause button on capital expenditure to better assess the evolving landscape.” His insights hint that while capital expenditures may take time to devise, one constant remains: “Wherever trade flows, investment follows.”
Breaking down the numbers, 38% of Asian firms are eager to boost trade with South Asia, while 36% are targeting increased business with Europe. Interestingly, North America presents a mixed bag; although 28% intend to decrease trade with the region, a separate 23% still pursue greater engagement. The survey further indicates that over the next two years, more than half of Asian firms (52%) are considering or actively moving production to, or increasing production in, China. Following closely behind, 39% are eyeing South Asia, with Europe at 35%, the US at 29%, and the Middle East at 28%.
However, rising costs are casting a shadow over this new trade landscape, with 51% of firms expressing concerns linked to tariffs and other trade-related expenses. A significant number (34%) have already adjusted prices to offset these increased costs, and another 51% plan to follow suit. In a world of shifting trade dynamics, it seems companies are not only navigating the currents but also learning to ride the waves.
What percentage of Asian companies are planning to increase trade with South Asia? 38% of Asian firms are looking to enhance their trade relations with South Asia.
How many firms expressed concern about rising costs? Over 51% of Asian companies are worried about increased costs due to tariffs and trade-related factors.
What trend is observed regarding North American trade? While 28% of firms plan to reduce trade with North America, 23% remain optimistic and seek to expand their business in the region.
