In May 2025 the US and China agreed to a truce to lower import taxes on goods traded between the two countries. This marks a significant de-escalation in a prolonged period of heightened trade tensions between the worldโs two largest economies, which has disrupted global supply chains, affected capital markets, and impacted hiring strategies across multiple regions.
Under the agreement, US tariffs on Chinese imports dropped from 145% to 30%, while China reduced its tariffs on US goods from 125% to 10%. While this temporary easing offers tactical relief, the structural impact on global workforce strategy remains significant. Talent leaders must continue to navigate a business environment shaped by shifting economic alignments, regulatory complexity, and regional diversification.
Trade truce offers breathing room - but planning remains key
One of the most immediate impacts of the tariff reduction is the relief from escalating costs that had previously hindered business operations. The reduction in import taxes, especially for industries relying on raw materials, electronics, and industrial components, has eased cost pressures and stabilized prices, particularly for industries heavily impacted by tariffs, such as tech and manufacturing.
With some of the immediate cost burdens eased, businesses are now more inclined to resume hiring, especially in key operational roles. Recruitment for permanent positions is now growing, as companies become more open to long-term workforce investments, while still relying on interim talent models in the short term.
Boost in market confidence
The financial markets responded positively to the tariff truce, with indices like the S&P 500 and Nasdaq experiencing noticeable gains. This uptick in market confidence is a crucial indicator that businesses are regaining optimism about the future of cross-border trade.
The renewed momentum is pushing companies to revisit hiring plans, particularly for roles in financial analysis, investment strategy, and tech development. There's also a renewed focus on talent acquisition for high-demand areas like cybersecurity and data analytics.
Reinvigoration of bilateral projects
The tariff truce has also reignited discussions about cross-border collaborations, especially in industries like energy, infrastructure, and life sciences. Both US and Chinese companies had shelved or postponed joint ventures and investments due to the unpredictable tariff environment. With the truce in place, these projects are once again being considered, with professionals who can navigate international regulations and project complexities now in high demand.
Emphasis on long-term workforce resilience
Perhaps one of the most strategic outcomes of the truce is the focus on building a more resilient workforce. Businesses are no longer simply reacting to the day-to-day challenges of trade tensions, instead they are planning for future disruptions, making workforce strategy a core component of long-term sustainability. Key trends include:
Talent localization: Companies are increasingly investing in region-specific workforce planning, rather than relying solely on global talent pools.
Workforce flexibility: Firms are placing a greater emphasis on agile staffing models that allow for easier adaptation to shifting geopolitical realities.
This move towards more strategic workforce planning means that companies are looking for consultative talent partners instead of recruiters that are purely transactional. Talent management professionals with expertise in global workforce strategy, compliance, and risk mitigation are crucial in helping businesses navigate these ongoing shifts.
Industry-specific impacts
Each industry is experiencing unique challenges and opportunities, with distinct shifts in recruitment needs and workforce strategies, which is where Phaidon International continues to provide expert guidance tailored to ever-changing market conditions.
From Selby Jennings in financial services, LVI Associates in energy & infrastructure, and DSJ Global in supply chain, to EPM Scientific in life sciences, Glocomms in technology, and Larson Maddox in regulatory & legal, Phaidon International delivers industry-focused talent solutions that align with todayโs global hiring demands.
Financial sciences & services
Investment banks, asset managers, and insurers are recalibrating risk models and geopolitical exposure assessments. Hiring in compliance and regulatory risk has increased, particularly in global financial hubs like New York, London, Hong Kong, and Singapore, and demand is rising for professionals who can navigate trade-related volatility in investment portfolios, commodities, and currency markets.
Energy & infrastructure
Projects that required imported materials, or cross-border investments have been in limbo, but firms are now able to review project viability in the US. In APAC, especially Southeast Asia, the recalibration of Belt and Road investments has created both bottlenecks and new opportunities, particularly in engineering and project management recruitment. European utilities and energy companies are evaluating regional talent requirements as they consider expanding beyond traditional supply corridors.
Supply chain
Global supply chains continue to be reshaped. While the tariff rollback may ease immediate cost pressures, long-term diversification is firmly underway. This has led to persistent demand for talent in supply chain strategy, trade compliance, and procurement optimization across all regions. Firms in the US and Europe are nearshoring or exploring alternative manufacturing locations, creating talent needs in Mexico, Poland, and Vietnam. APAC-based firms are shifting toward regional integration, enhancing demand for local logistics and operations experts.
Life sciences
Pharmaceutical and biotech companies, many of which rely on complex cross-border supply chains, are investing in risk mitigation. Talent needs are rising in global regulatory affairs, quality assurance, and manufacturing relocation planning. Europe and the US are accelerating efforts to localize critical drug production, prompting hiring in bio-manufacturing and operational transformation. In APAC, firms are reassessing US market access strategies, requiring legal, compliance, and market access experts.
Technology
Hardware-intensive tech companies remain exposed to tariff risks, particularly those involving semiconductors and advanced electronics. Recruitment in R&D, manufacturing operations, and strategic sourcing remains highly targeted, and software firms, which are less exposed to physical trade, are seeing increased demand for cybersecurity, data governance, and compliance professionals.
Regulatory & legal
Across all regions, law firms and in-house legal teams are scaling up trade, compliance, and government relations capabilities. The demand for legal professionals with expertise in WTO rules, customs law, sanctions, and cross-border M&A has increased. European legal markets are particularly active in advising on dual-use regulations and trade restrictions, while US and APAC firms are doubling down on policy advisory and dispute resolution capabilities.
Agility over assumption
The 2025 US China tariff truce is a strategic pause, and not a definitive resolution. While it offers tactical breathing space, the long-term pressures of deglobalization, protectionism, and geopolitical competition persist. For employers operating across the US, APAC, and Europe, workforce strategy must be adaptive, informed, and globally aligned.
Talent leaders must act with foresight, building resilient teams, diversifying talent pipelines, and aligning recruitment with global trade realities. The firms that do so will not just survive the uncertainty, theyโll lead through it.
Phaidon International offers the industry expertise and global reach to help you navigate hiring challenges with confidence โ get in touch today to talk to a talent expert in your industry.
