Cooling off the excessive confidence
If the economy is running too hot, you need to cool it off.
One way to cool it off is to add uncertainties.
Individuals and businesses will pause new investments and rethink how fast they shall run when uncertainty (not short-term, or can be overlooked) skyrockets.
Perfect excuse to change gears
Sometimes, business leaders also need a good external excuse to press the “pause” button. Why?
Normally, they want to be seen as the encouraging voice internally. That what business leaders do – to grow the companies. And they always want suppliers to increase their capacity. Thus, showing extra confidence in business can ensure suppliers are confident enough.
To be seen as credible in the long-term, business leaders can’t change the tone overnight. And it’s hard to change the tone if there is no external shock. Otherwise, it feels like you were trying to “trick” your suppliers or employees.
Suddenly, tariff becomes this perfect excuse – external, lingering, impactful.
It’s just the perfect time to take a step back and rethink business leaders. And it’s the perfect opportunity to change gears.