Indeed, geopolitical, macroeconomic and trade uncertainty is cited as the top risk to achieving growth (42%), and 54% say they delayed a planned investment as a result. But CEOs are responding proactively by rethinking global relationships: 44% of respondents say they are looking to adjust supply chain arrangements; 42% are exploring product design innovations to reduce reliance on tariffed materials; and 39% are relocating operational assets to a different geography.
“The new economic context will be less stable than the previous one, and immediate action, rather than passive waiting, offers greater chances to create long-term value. In this regard, 50% of global CEOs are extremely concerned about the impact of tariffs, and 57% plan to explore mergers and acquisitions in the next 12 months. Additionally, 44% of leaders are seeking new sourcing options, reflecting a proactive approach to navigating uncertainty. These insights highlight the importance of decisive leadership in leveraging the current landscape for meaningful progress and resilience,” said Bogdan Ion, Country Managing Partner EY Romania & Moldova and Chief Operating Officer Central, Eastern and Southeastern Europe & Central Asia (CESA).
The complexity of the current landscape is reflected in the fact that the most critical trading relationships are not always the closest or most locally significant, according to the survey. While 42% of Chinese respondents cite the US-China tariff and trade dispute as their primary concern, 8% are more focused on the US-Mexico relationship. This underscores the global interconnections and difficulty of navigating tariff challenges, particularly as other major economies react to potential US tariffs. This contrasts with a highly positive outlook for M&A in 2025 prior to the US administration’s tariffs announcement of 2 April this year, which culminated in US$1t of deals recorded during 1Q25 – up 25% year-on-year. With 57% of survey respondents hoping to pursue M&A in the next 12 months, the report indicates that pre-existing pressures – tech adoption and a talent squeeze key among them – will remain pent-up transformation drivers that will see CEOs return to dealmaking as the market settles.
M&A can drive transformation and deliver value in times of challenge
While reports of integration hurdles, cultural misalignment and overestimated synergies often lead to speculation around how much shareholder value is delivered post-deal, the survey tells a different story about the CEO experience. More than half of CEO respondents (55%) say their recent acquisitions met or exceeded value expectations, with only 2% reporting value destruction.
AI investment roadmap unclear as many CEOs look to cost reduction
Global CEOs report mixed results from artificial intelligence (AI) deployments to date, which may slow down implementation in a turbulent year.
While 36% of respondents say they plan to expand AI investments after positive results to date, 25% say they are “scaling back or reconsidering” AI investments due to “unclear or disappointing” returns. This may create pressure on AI deployments, as CEOs try to balance a cautious response to the current volatility with an ongoing demand to accelerate AI adoption and to upskill and hire talent for specialized roles in AI.
With nearly half of CEO respondents (42%) indicating that they are looking to absorb additional costs internal through operational efficiencies and cost reductions, many may be delaying tech investment pending more geopolitical certainty.
Also fueling a renewed and likely growing focus on cost management is the challenge of inflation. Seventy-one percent of respondents agree that inflation continues to be a challenge and will be an issue they need to navigate for the next year, and many of those will be looking at opportunities to mitigate cost increases.