KPMG’s “Top Geopolitical Risks 2025” report comes at a pivotal moment. The resurgence of trade protectionism—exemplified by the recent tariff measures announced by the Trump administration—signals not just a policy shift, but a structural reshaping of global commerce. We’re witnessing the fragmentation of long-standing economic alliances, as countries recalibrate trade and investment relationships in response to shifting geopolitical priorities.
As quoted in the report, there were 3,000+ “harmful” trade interventions implemented in 2024, a significant increase from just 500 a decade earlier. Additionally, the report’s identification of “tectonic shifts” in power and economic centers, coupled with a fragmented regulatory and tax landscape, has real-world implications for cross-border business. For instance, while 140 countries agreed to the global minimum tax rules, many countries including the US have already withdrawn or stalled implementation. This dissonance introduces complexity and risk, particularly for companies navigating multinational footprints.
Perhaps most telling is the evolution of the tech risk landscape. Generative AI is a case in point—it’s fast-moving, politicized, and largely unregulated. Businesses are caught between innovation and compliance, with geopolitical tensions only heightening that uncertainty. Add to this the reality of multi-layered supply chain risks—spanning conflict zones, climate threats, and cyber vulnerabilities—and we’re looking at a radically altered risk canvas. With most of the global trade exposed to some form of geopolitical influence, organizations must reimagine resilience.
This is no longer about reacting to isolated shocks—it’s about anticipating structural volatility. Boards and executive teams must embed geopolitical scenario planning into strategy, elevate tech and regulatory foresight, and double down on operational flexibility. As the report rightly notes, geopolitics is now a boardroom issue—ignoring it is not an option.
