In today’s evolving global economy, U.S. corporate boards are facing heightened pressure to navigate the ripple effects of trade policy, particularly tariffs and broader economic uncertainty. Rather than viewing these developments through a purely defensive lens, many boards are treating them as a catalyst for innovation, resilience, and long-term strategic realignment.Tariffs, once seen as isolated policy levers, have now become structural considerations in boardroom conversations. With more than $350 billion in Chinese goods, still subject to Section 301 tariffs, and longstanding duties on key materials, like steel and aluminum, companies are reassessing global sourcing strategies. These assessments aren’t just operational—they’re deeply tied to the board’s fiduciary responsibility to safeguard shareholder value and guide sustainable growth. Increasingly, boards are taking a proactive approach. According to a 2024 Conference Board report, over two-thirds of CEOs cite global trade tensions as a significant influence on their strategic direction. Board committees, focused on finance, risk, and operations, are now regularly evaluating tariff exposure and global supply chain dependencies, as part of their enterprise risk management processes. In response, many companies are shifting their manufacturing footprints. Reshoring and nearshoring are no longer niche initiatives—they’ve become mainstream. Over 40% of U.S. manufacturers have begun relocating production closer to home, a trend backed by board-level commitments to reduce reliance on single-region supply chains. Boards, at companies like Intel, Tesla, and General Motors, have supported multi-billion-dollar investments in U.S.-based production facilities, citing not only cost efficiency but also strategic control and national resilience. At the same time, boards are prioritizing transparency and communication. In earnings calls, investor updates and public filings, more companies are openly discussing tariff-related risks and their mitigation strategies. This level of disclosure reflects a shift in governance culture, one that favors clarity and long-term thinking over short-term gains. Beyond internal decision-making, boards are also becoming more engaged externally. Many directors are working, with legal teams and government affairs officers, to advocate for regulatory clarity, seek exemptions and provide input on trade frameworks. According to the U.S. Chamber of Commerce, board-level involvement in trade-related policy discussions has grown by 36% since 2022. Despite the complexities, there is a growing sentiment among board members that tariffs, while challenging, have brought a renewed focus to strategic fundamentals. A 2025 PwC survey found that 71% of directors believe current trade dynamics could ultimately strengthen U.S. industrial competitiveness, by encouraging innovation, investment, and diversification. In a time of economic flux, corporate boards are not sitting back, they are steering. By leaning into uncertainty with structure and strategy, they are helping their companies adapt, evolve and lead with purpose in an increasingly interconnected world. Joy Li Chilmark Research Analysis