Tariffs and Talent: Navigating the Trade Turbulence in Global Mobility

If you’ve been following global headlines, you know there’s no escaping the rising tide of tariffs. As BCG aptly puts it, “There’s nowhere to hide as tariffs reshape global trade.” On April 2, the U.S. administration announced sweeping new tariffs, including a 10% “minimum baseline tariff” and steeper “reciprocal trade tariffs” on imports from over 60 countries. While some of these have been rolled back or temporarily delayed, these measures mark a dramatic expansion of trade policy. It's a new era of economic uncertainty where nobody knows what will happen next. 

While countless articles dissect how these developments will impact trade and consumer markets, very few have explored how tariffs will affect global mobility. Today, we take on that task. Though things are changing rapidly, this article offers early insights into what mobility professionals should expect and prepare for.

We’re also inviting the global mobility community to contribute through our 2025 Pulse Survey: Understanding the Impact of Tariffs on Global Mobility. Please add your perspectives and help us collect direct data from mobility experts to add to the conversation.

Travel: Higher Prices, Lower Certainty

Tariffs on aircraft components and vehicle imports are already pushing up travel costs. Airlines face steeper maintenance and manufacturing expenses, which may lead to pricier tickets and reduced routes—particularly for international travel. Rental car companies are seeing similar pressure as vehicle and parts costs rise, impacting fleets and availability.

A recent PhocusWire article notes, “Tariffs will increase costs for all operators—airlines, hotels, car rentals—and therefore lead to increased prices. Increased pricing will dampen demand, and the economic uncertainty created could reduce consumer confidence even further.”

For mobility programs, this translates to elevated costs for look-see trips, en route travel, home visits, and assignment-related transportation. Given that per diems and COLAs often include these expenses, those allowances may also need upward adjustment.

Estimated impact:

Meals: Up to 2% increase due to higher food import costs.

Airfare: Potential 10% increase from aircraft parts tariffs. However, this may be a delayed impact as currently plane ticket prices are basically at 2010 levels. 

Hotels: 3% increase, influenced by tariffs on imported furniture and supplies.

Rental Cars: 5% jump driven by vehicle and parts tariffs.

Household Goods: More Delays, Higher Costs

While tariffs typically don’t apply to used household goods, the ripple effects on global shipping could be significant. Reduced freight volume from major trading partners (like China, Canada, and Mexico) may prompt ocean carriers to cut shipments, increasing wait times and storage costs.

FreightWaves reports there has been a “tariff shockwave” in response to the tariffs from March 24  to now where the logistics industry has witnessed precipitous declines across multiple sectors:

• Global twenty-foot equivalent units booked plummeted by 49%.
• Overall U.S. imports fell by 64%.
• U.S. exports declined by 30%.
• U.S. imports from China dropped 64%.
• U.S. exports to China decreased by 36%.

The result was a widespread booking freeze, as shippers paused to reassess their strategies.

Mike Quigley, VP of Global Moving Services at Ace Relocation Systems, warns of potential delays and increased claims. He explains that as ships are rerouted to multiple ports to fill capacity, it creates longer shipping transit times that could lead to more mold claims out of humid locations. He believes that the moving industry may also face rising costs for packaging and equipment, which rely on tariffed materials like aluminum, steel, and plastics.

Mike Brannigan, CEO of Suddath, summarizes the concern: “We are one tweet away from a different tariff policy… high levels of uncertainty can lead to paralysis and stagnation. Businesses hate uncertainty more than anything.” He adds, “If the tariffs are implemented in a manner close to what was articulated on ‘Liberation Day’, the moving / relocation industry could see that tariffs get applied to goods commonly purchased during or after a move (i.e., furniture, appliances, electronics), there will be increased costs for the movers and international shipping companies and there will be confusion and disruption, which usually leads to surprises and increased costs and exceptions”.

Brian Loud, industry veteran and newly appointed President at Expat Relocation Solutions, points this out that if trade tensions escalate, the impact on peak relocation season (May–September) could be severe. He goes on to share that his big concern is that ultimately these tariffs could bring a very big reduction in activity for mobility programs. Fewer moves, lower revenue, and rising operational costs may force moving companies to raise prices for corporate clients already working with thin margins.

Programs with budget caps for household goods shipments, or for overall expenses, then may want to revisit those amounts due to the impact of the tariffs driving up costs. While some have suggested offering furniture leasing or purchase benefits as options so that shipment sizes can be reduced, those too are expected to go up in cost as the tariffs are across the border in many cases. Stay tuned!

Corporate Housing: Vacancy Now, Inflation Later

Temporary housing—a top cost category for most programs—is feeling immediate pressure. James Conigliaro, CEO of Dwellworks, notes that while prices are temporarily down due to vacancy, most providers are expecting increases. Tariffs on furniture, building materials, and cleaning supplies are already raising costs. Others are predicting a 3–5% increase in housing costs, especially as inventory levels are adjusted and demand returns.

Peggy Smith, Chief Innovation Officer at National Corporate Housing, shares a broader concern: “Tariffs could significantly increase the cost and complexity of global relocations. We may see a shift toward regional talent deployment and shorter-term assignments. This could constrain the global labor pool and further stress companies seeking skilled talent.”

Destination Services: Riding Out the Storm

Service providers across destination services echo a common theme: prepare for a slowdown now and a pivot later. Most believe mobility volumes will temporarily freeze or slow, with clarity arriving only after months of policy stabilization.

James Conigliaro offers a pragmatic outlook: “The best response in periods of high volatility is to stay focused on excellence in your area, provide fact-based information to clients, and remain agile. We've weathered storms before. Activity slows, companies regroup, and then business resumes.”

From Europe, Damian Aebischer, CEO of Packimpex, observes that while intra-European movement may remain stable, U.S. inbound assignments could drop significantly, especially if nearshoring strategies take hold.

Global Tax and Immigration: Time to Buckle Up

The tax implications of reduced mobility, shortened assignments, or accelerated repatriation are complex. Eric Loff, President of Global Tax Network, advises companies to closely monitor their mobile workforce and ensure compliance.

“Understand the tax and immigration risks. Have contingency plans. Communicate with your mobile employees—especially non-citizens in the U.S.—who may be under added stress,” he advises.

He emphasizes that days of presence and timing of departures can drastically impact tax residency and liabilities. Now is the time to work closely with your tax advisor.

The Bigger Picture: A Cautious Outlook

Brian Loud, President of Expat Relocation Solutions, is concerned about broader repercussions. “There’s a real possibility that mobility activity gets paused or cancelled. Without clear guidance or economic stability, companies will hesitate.”

A delayed or diminished peak season could mean less revenue for the supply chain just as operating costs rise—again reinforcing the need for companies to revisit budgets, supplier relationships, and relocation strategies.

Purchasing Power: A Weakening U.S. Dollar

The dollar has fallen by roughly 8 percent this year, trading near a three-year low. There has been a particularly steep decline since President Trump announced tariffs on nearly every country's imports a few weeks ago. Investors may be shifting away from the dollar as a safe-haven asset, preferring the yen and Swiss franc. What does that mean for mobility?

Per AIRINC, when the US dollar weakens compared to the host country’s currency, the assignee’s goods and services (G&S) spendable income—the portion of their base salary meant for everyday living—loses value when converted to local currency. This means that their standard of living in the host location suffers unless COLA is adjusted. Tom Healy shares three key actions for mobility programs:

• Audit COLA policies for all US outbound assignees
• Ensure that exchange rate triggers are built into the update cycle
• Collaborate with your global mobility provider to maintain up-to-date allowance accuracy

Final Thoughts: Keep Calm, Stay Connected

In times of disruption, the global mobility industry must stay informed, flexible, and aligned with business goals. As Jack Jensky of Synergy Global Housing points out, “Staying connected and having open lines of communication with your customers is vital during these times.”

We’ll continue to monitor the impact of tariffs on global mobility and invite you to contribute to our ongoing 2025 Pulse Survey – Understanding the impact of tariffs on Global Mobility. Your insights will help us collectively navigate the uncertainty—and prepare for what’s next.

Stay tuned for Part 2 as we bring more expert commentary and data to light.