Trump's tariffs trigger massive losses, prompting companies to increase currency hedging efforts

Among the surveyed companies, 80% suffered losses in 2025 due to unhedged foreign exchange positions. On average, American companies lost $9.9 million, while UK companies lost approximately £6.7 million. Given the market volatility driven by tariffs, nearly two-thirds of companies plan to increase their hedging ratio this year. Currently, CFOs use financial instruments to hedge an average of 49% of their foreign exchange risk exposure.