WTF happened to global spend after the tariffs? (Brex has the receipts).

Tariffs exposed the fragile reality. CFOs are dumping expansion for risk management. Are you still building for a world that doesn't exist?

Author

Michael Morgenstern
May 06, 2025

Happy Tuesday Brex community,

The April 2nd tariffs delivered a blunt message: external volatility is an operational reality demanding immediate action. Duties up to 145% aren't speculation; they create tangible disruption. Brex data proved it: operational spend saw sharp contractions globally – an 81% drop in China, near-50% declines across Asia, unpredictable swings in key markets like Canada, sustained drops in India – highlighting where systems were exposed. This confirmed volatility feels perpetual and requires relentless execution on the controllable. Our April poll of over 500 finance leaders confirmed this reality forced a pragmatic strategic reset, contrasting with early Q1 optimism. Growth positivity dropped 18 points. Bullish IPO sentiment fell significantly. Geopolitical instability became the top external concern for 67%. When the market is uncertain, focus pivots to prioritizing risk management.  Full data can be found here.

Finance now needs to operate as a bedrock of operational discipline that actively mitigates risk and fuels resilient growth. Strategic finance leaders are recognizing that inefficient movement of capital, data, and decisions is a significant liability, and they are architecting their financial operations to address accordingly. Capital needs to be a dynamic asset that generates return and remains instantly accessible for strategic deployment. This involves deploying cash management techniques that keep operational funds earning yield while ensuring complete liquidity. Finance leaders also need to empower execution through tools that embed policy and control directly into how employees spend. The imperative is clear: leverage modern financial capabilities to control the controllable, drive efficiency, ensure compliance, and maintain the agility needed to execute relentlessly amidst perpetual volatility.

We are here at Brex to be your strategic advisor and share best practices.

Growing together, Michael Morgenstern

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Don’t hesitate to reach out,🦾!