Another 42 per cent cap their tolerance for tariff-related cost increase at 40 per cent–a threshold far lower than expected, according to the survey published on June 4.

This is Deloitte's fifth study on the evolving complexity of the tax and business environment of the region. With the evolvement of the business landscape, this year's study takes a sharper, more executive-focused lens, capturing perspectives from tax leaders and C-suite decision makers. The result is a concise view of what shapes business decisions today, and how tax and tariff considerations influence strategic decisions.

Deloitte's 2025 Asia Pacific Tax & Tariff Complexity Survey, conducted between August 1 to September 21, 2025, has received inputs from 363 senior executives from a diversified industrial background across the region.

Instead of relying heavily on price adjustments to absorb tariff shocks, executives now view them more as short‑term stopgaps rather than viable long‑term strategies. This shift in mindset reflects a broader recalibration: leaders are increasingly prepared to rethink their operating models when cost pressures intensify, signalling a more proactive and strategic approach to supply‑chain resilience.

Nearly 70 per cent of respondents indicated that their primary focus in supply chain decisions has shifted from minimising costs to focusing on reliability, stability, or strategic alignment. This integrated approach has encountered several key internal obstacles beyond macroeconomic volatility.

More than half of those surveyed cited operational challenges as stemming from internal gaps–insufficient processes, limited data capabilities, critical skill shortages, and workforce downsizing–making up 51 per cent of the total. As a result, transforming the tax operating model has moved rapidly up the C-suite agenda. Operational readiness is no longer a baseline expectation, but a true competitive differentiator.

“Vietnam is one of the markets directly impacted by shifts in regional supply chains, so the survey findings closely reflect what we have observed while working with businesses here,” said Bui Minh Tuan, Deloitte Vietnam Tax & Legal leader.

“Many business leaders are placing greater emphasis on reliability and operational readiness rather than focusing solely on tax costs. Amid significant changes to the domestic tax and legal framework, we believe that elevating the tax function from compliance to strategic decision support will help businesses respond more effectively to future uncertainties.”

To help organisations navigate this complexity, Deloitte introduces the Strategic Response Compass. The compass orients decisions around three critical pillars: Cost Signals (pricing and cash flow sensitivity as catalysts for change), Alignment (supply chain and stakeholder ecosystems as connective strength), and Enablement (digital and operational readiness as engines of transformation).

Eunice Kuo, Deloitte Asia Pacific Tax & Legal leader, said that at the regional level, “tax and tariff volatility has shifted from a background issue to a central factor for any business. Treat cost signals as early warnings, align ecosystems beyond cost, and embed digital enablement at the core. Those that act on these imperatives will not only withstand shocks but will transform volatility into foresight, momentum, and lasting competitive advantage.”