Tariffs Impacting Your Global Workforce? Here’s What to Do

US President Donald Trump announced new tariffs as part of his administration’s efforts to adjust global trade imbalances and address foreign competition. These tariffs could fundamentally reshape global operations, prompting HR, finance, and logistics leaders to rethink workforce strategies in real-time.

As a result, many companies may transition from established manufacturing hubs like China to new and unfamiliar territories with lower tariffs.

However, swiftly relocating international hiring and operational centers without a strategic plan can lead to costly layoffs, compliance issues, and talent shortages. Deel recognizes these complex challenges and has supported thousands of businesses in navigating the ever-changing landscape of global trade.

This article explores how Deel's global workforce solution enables companies to proactively manage workforce shifts driven by tariffs. By partnering with Deel, your organization can confidently engage in workforce planning, swiftly enter new markets, mitigate compliance risks, and reap cost savings, all while maintaining competitive agility in an unpredictable tariff environment.

How tariffs are changing the way you hire, source, and scale

Imposed tariffs are triggering real-time supply chain shifts, especially in manufacturing hubs like Asia. Companies planning to cut their workforce in China or Vietnam may hire in lower tariff countries. These moves affect more than logistics—they reshape talent pipelines and workforce strategy.

Here are some of the biggest expected outcomes of recent tariff changes.

Workforce layoffs

Tariffs could force manufacturers in export-reliant countries to cut jobs. In fact, 46% of US manufacturers in Vietnam had been expecting layoffs, a survey by the American Chamber of Commerce found—reflecting the mounting pressure on global manufacturing hubs.

Higher production costs

Tariffs raise input costs and squeeze margins, prompting companies to leave high-exposure markets. Many are shifting to new sourcing and manufacturing locations—such as Mexico and Free Trade Zones—without waiting to establish local entities. ​

The “China Plus One” strategy is accelerating, with companies like Apple shifting parts of their supply chain to lower-tariff countries and pharmaceutical firms relocating production to more trade-friendly markets. Learn more at the Foreign Affairs Forum.

See also: Do Trump’s New Tariffs Impact International Workers or Just Goods?

Logistics and compliance gaps

New trade routes require new expertise. Companies must now navigate unfamiliar labor laws and customs regulations. This has triggered surging demand for freight forwarding and compliance professionals, especially in Southeast Asia. ​

Discover how ClickOut Media hired specialized talent at speed with Deel.

Financial pressure

Tariffs are prompting companies to reassess cost structures, reevaluate product designs, adopt automation, and shift production to lower-cost regions. Every labor decision is now subject to deeper cost-benefit scrutiny.

Domestic talent shortages

Reshoring often runs into a talent wall. US firms are already struggling to fill skilled roles in logistics, compliance, and engineering. A shortfall of 2.1 million skilled workers by 2030 has been projected by The National Association of Manufacturers—reshoring only adds to that pressure.

See also: 8 Tips to Find and Hire Remote International Talent

Why rushed workforce shifts lead to costly mistakes

As organizations respond to rising tariffs by cutting roles, relocating talent, shifting supply chains, and exploring new labor markets, they face a complex web of compliance and operational challenges. Without careful planning, these changes can create costly setbacks:

• Offboarding delays: Local labor laws often require long notice periods and severance, creating legal and financial exposure
• Slow hiring: Setting up legal entities in new countries can take months and cost thousands in legal and admin fees
• Contract and payroll misalignment: Mistakes can trigger tax penalties, pay delays, or labor claims
• Visa and immigration hurdles: These can block access to critical talent
• Insufficient local support: Gaps in HR, payroll, or IT disrupt continuity and slow down execution
• Rushed workforce decisions: Urgent shifts often happen without data or scenario planning
• Compensation errors: Misjudged pay packages can lead to attrition or budget overruns
• Reputational risk: Mishandled layoffs, hiring delays, or legal missteps can damage trust with employees, customers, and investors

Companies that navigate this environment well move fast—but not blindly. They combine speed with data, compliance, and local execution. This is exactly where global hiring platforms like Deel give companies an edge: enabling strategic moves without legal, financial, and reputational risk.

See also: The Enterprise Guide to Global Compliance Management in 2025

How Deel supports companies under tariff pressure

Deel helps companies respond strategically to tariff-driven shifts by enabling smarter planning and faster execution. Here’s how:

• Data-driven workforce planning: Deel’s platform enables finance and HR leaders to refine headcount plans and forecast total hiring costs across markets using real-time compensation benchmarks and local market insights. When you’re ready, you can use Deel Talent to find and onboard candidates
• Fast hiring and market entry: With Deel's wholly-owned Employer of Record (EOR) model, businesses can swiftly hire employees in over 150 new markets to support diversified supply chains without the lengthy process of establishing new entities. Additionally, the Deel Contractor of Record (COR) model allows organizations to compliantly hire contractors anywhere, enabling them to respond to demand fluctuations without permanent commitments
• Deel PEO and US Payroll: For teams reshoring to the United States, Deel PEO lets companies onboard employees in any US state without registering in each one individually. Deel handles US payroll, benefits, and compliance across jurisdictions, ensuring a compliant and unified US hiring strategy
• Legal compliance: Deel’s Compliance Hub ensures employment contracts, benefits, taxes, and local labor laws are handled correctly without relying on opaque third-party partners or building in-house legal expertise in every region. Discover how SiteMinder compliantly expanded in global markets with Deel
• Compensation design: Deel Compensation provides localized, competitive Salary Insights to ensure companies attract and retain top talent while meeting labor budgets
• Streamlined operation: Deel eliminates the need to build internal HR, legal, and payroll functions. The platform uses workflow automation and Deel AI to remove tedious manual tasks, reduce human error, and keep your team lean. You can also benefit from end-to-end global equipment lifecycle management in 130+ countries with Deel IT
• Visa and immigration support: If you need to hire expatriate talent or relocate key employees, Deel provides visa sponsorship and mobility assistance worldwide. Discover how Revolut streamlined employee relocation with Deel Immigration
• Centralized global team oversight: No need for multiple third-party platforms and services. Deel’s Global HRIS brings your entire global team together in one place, providing a single source of truth, easy access to data, seamless collaboration between teams, and a unified experience for everyone

Discover how Outreach centralizes HR and payroll across 5+ countries with Deel.

See also: Manage Your US and Global Workforce With an All-In-One HR Software

Adapt your global workforce strategy with Deel

This isn’t a short-term challenge. Global companies must actively adapt their operations, supply chains, and workforce strategies in response to recent tariffs to minimize disruptions and maintain competitiveness in an evolving trade landscape. Deel is the ideal long-term partner to navigate this transition.

With Deel, leading organizations are:

• Diversifying their supply chains and talent pools simultaneously
• Prioritizing flexibility over permanence in uncertain markets
• Centralizing workforce management to streamline operations and reduce administrative burdens

While tariffs will continue to evolve, your workforce can remain agile. Schedule a 30-minute consultation with a product expert to have your concerns addressed.