Companies need to be ‘proactive and flexible’ in response to tariffs

• Reviewing domiciles, financing structures, and entities will help build resilience.

Multinationals and corporates looking to expand overseas need to focus on being proactive and flexible in response to the introduction of tariffs, Ocorian, the specialist global provider of fund administration, capital markets, corporate, fiduciary and regulatory services, says.

It is advising clients to seek advice on a range of corporate issues including domiciles, financing structures and entities so they can then be prepared for changes, but stresses that currently companies are in a ‘wait and see mode.’

Ocorian’s global spread and range of services enables it to support cross-border businesses looking to structure offshore or move into new regions.

Having advice and recommendations on possible courses of action in place will enable companies to build resilience and to act if necessary in response to tariffs affecting their location of corporate headquarters or the need for new corporate entities and financing structures.

One potential area to focus on is the use of Special Purpose Vehicles (SPVs) to attract capital and provide investors with easy access as well as supporting transactions.

Jason Gerlis, Global Head of Corporate at Ocorian, said: “Our advice is to be proactive and not reactive. Do not try to respond to the next piece of news and try to build a system that is flexible and responsive to change.

“As with all regulatory change, it’s not about reacting to developments today or even creating a model that can predict the changes of tomorrow. It is about designing structures that are resilient enough to absorb geopolitical risks.

“Tariffs are a tax on complexity and the global system is becoming increasingly volatile and opaque. The current environment is creating greater friction, and corporations need to build systems that are highly flexible, enabling them to respond to change more easily."