In recent years, globalisation has faced headwinds, particularly with the rise of trade protectionism, notably represented by the Trump administration. The U.S. has frequently imposed tariffs on China and other major economies, not only reshaping the global trade landscape but also compelling many export-oriented companies to reassess their supply chains and international strategies. In this invisible 'tariff war,' human resources, as the foundational element of a company's globalisation capabilities, are being pushed to the forefront of strategic adjustments.

High tariffs not only raise the cost of products entering target markets but also exert continuous profit pressure on export enterprises. In the process of looking for "tariff lowlands", enterprises have to transfer their production bases, sales centres  and even research and development institutions to Southeast Asia, Latin America, Central and Eastern Europe and other areas covered by low tariffs or free trade agreements.

Behind this industrial chain restructuring is  a global human resource rearrangement:

• The establishment of a physical presence or representative office in a new market requires local talent support.

• The construction and operation of the new plant depend on efficient labour organisation.

• The headquarters puts forward higher requirements for the unified management and compliance control of global employees.

In other words, the global ability of human resources determines whether an enterprise can achieve real strategic transfer and implementation under tariff pressure.

In traditional globalisation, human resources are often in  executive roles. But when tariffs force companies to enter a new situation of multi-country operations, HR becomes the driver of organisational strategy. The challenges faced by companies include:

• The pressure of labour compliance increases sharply: the labour laws and regulations of various countries are significantly different, especially in emerging markets, where labour contracts, tax returns, social security contributions and other systems are complex. If you enter the market rashly, you may face fines or even business interruption due to non-compliance with labour laws.

• Rapid localisation is challenging: New markets often lack a ready talent pool, and the barriers to language, culture, and legal compliance are significant. The headquarters HR team often struggles to independently manage cross-cultural recruitment, training, and management.

• Cross-border compensation and tax management are complicated: In a multi-currency and multi-tax environment, processes such as salary payments, individual income tax calculations, and employee reimbursements significantly increase HR's technical and compliance costs. These issues combine to transform human resources from a 'back-office department' into a critical factor for successful international expansion.

In this context, enterprises should intervene in the global layout decision with human resource strategy in advance, and adopt the following strategies to deal with it:

Achieve low-cost compliance employment through the EOR model

With the Employer of Record (EOR) service, companies can legally employ, pay salaries and pay social security for overseas employees without having to set up a local entity. EOR not only significantly reduces compliance risks but also enables companies to quickly deploy markets and respond flexibly to tariff changes.

Build a regional talent pool and enhance human resource resilience

Instead of building a team every time a new country is established, it is better to build a "human resources springboard" in key countries and regions in advance. By setting up regional human resource centres or establishing cooperation networks with local HR service providers, we can grasp the available human resources in advance and respond to the labour demand brought by the rapid changes in the market.

Promote the digitalisation of human resources and realise global integrated management

Deploy a cross-border HR SaaS system to support online contract signing, compliance review, salary processing, remote office collaboration and other functions, unify global employee management standards, and improve operational efficiency.

Build a multicultural management system to reduce cross-border cooperation friction

Enterprises need to strengthen cross-cultural training for middle and senior managers, optimise internal communication mechanisms, and establish a "local person in charge + global command system" collaborative mode so that global employees can truly integrate into the unified values and execution framework.

In the past, tariff issues were more dominated by finance or supply chain; now, it has directly leveraged the talent structure and organizational structure of enterprises. Whether an enterprise can quickly enter a low-tariff area is no longer just a logistics problem, but also a question of "whether there are people, what people to use, and whether they are compliant".

Therefore, in the new wave of global industrial restructuring, human resource is no longer just a guarantee department, but a central force driving enterprises to go abroad, cross policy risks and realise strategic implementation.

Only by building a human resource system with a global vision, local execution, and digital capabilities can enterprises move forward steadily under the pressure of tariffs and win the initiative in the global market.