DBS CEO Warns of Heightened Market Volatility Amid Trump Tariffs: Navigating the New World Order

In a stark warning to businesses, DBS Group CEO Tan Su Shan has declared that the era of “business as usual” is over, as U.S. President Donald Trump’s 2025 tariffs amplify global economic uncertainty. Speaking at a Singapore leadership forum in late April, Tan emphasized that volatility in interest rates, foreign exchange markets, and supply chains will dominate the coming quarters, urging firms to brace for instability and adapt to a “new world order” shaped by trade tensions.

The Tariff-Driven Volatility Cycle

Tan’s remarks underscore a growing consensus among global financial leaders: Trump’s April 2 tariff announcements—expanding reciprocal duties on most countries—have triggered cascading disruptions. The CEO highlighted three critical risks:
1. Interest Rate Volatility: Central banks worldwide are caught between inflationary pressures and the need to stabilize economies amid trade shocks.
2. Forex Instability: Currency fluctuations, particularly in emerging markets, have surged as businesses scramble to hedge against tariff-driven cost spikes.
3. Supply Chain Fragmentation: Companies must now diversify logistics networks and inventory strategies to avoid disruptions in critical sectors like semiconductors and consumer electronics.

Tan’s warnings align with recent data: . The IndexBox trade flow platform reports that Asian exporters are pivoting toward Middle Eastern and African markets, with Singapore’s port traffic to these regions rising 18% year-on-year.

A Strategic Pivot for Survival

The DBS CEO called for a fundamental rethinking of business models. “Adaptation is no longer optional—it’s existential,” she said, urging firms to:
- Reconfigure supply chains to reduce reliance on high-tariff corridors.
- Invest in tech-driven logistics to optimize inventory and reduce delays.
- Diversify revenue streams by exploring untapped markets in ASEAN and Africa.

Her advice reflects DBS’s own strategy: the bank is expanding its presence in Southeast Asia and the Middle East while offering tailored financing for companies retooling supply chains. This shift has bolstered DBS’s record-breaking performance in 2024, despite 2025’s uncertainties.

The Government and Market Response

Singapore’s government has launched a taskforce, led by Deputy PM Gan Kim Yong, to support businesses with tax incentives, training, and trade financing. Meanwhile, global markets are pricing in the risks:
- U.S. equities dipped 3.2% in the four days following the tariff announcement.
- Asian bank stocks, including DBS, outperformed peers due to their diversified regional exposure. .

Conclusion: Volatility as the New Benchmark

Tan’s warnings are backed by hard data. According to DBS’s own analysis, companies that proactively restructure supply chains and adopt agile finance practices could mitigate 30–40% of tariff-related losses. Conversely, firms clinging to outdated models face a stark reality: the World Bank estimates that prolonged trade wars could reduce global GDP by 1.5% annually.

In this volatile landscape, DBS’s advice is clear: businesses must pivot or perish. For investors, the opportunities lie in companies demonstrating resilience—those with diversified revenue streams, flexible supply chains, and strong regional ties. As Tan put it, “The next era belongs to the adaptable.”

. The numbers confirm that the path ahead is bumpy—but navigable for those ready to rethink the rules.