Resilience required amid global tariff turbulence

As the global economy reels from intensifying trade wars and sweeping tariff policies—particularly those stemming from the United States—financial markets and commerce ecosystems are being pushed to the brink. While capital markets scramble to keep pace with historic trading volumes, the payments industry is confronting an unprecedented rise in transaction failures, compliance headaches and systemic risks that show no signs of abating.

Real-time trading faces tariff whiplash

Equity markets have responded sharply to tariff developments, with daily volumes surging to nearly 30 billion shares—more than double last year's average of 12.2 billion. This spike has pushed capital markets' IT systems to their operational limits. According to Himanshu Gupta, Senior Architect at Solace, traditional technology infrastructures are ill-equipped to handle such turbulence. "It's all in a day's work for an event-driven platform," Gupta said. "Real-time, resilient systems are no longer optional—they're essential."

Gupta emphasized that latency, data integrity and guaranteed message delivery are now mission-critical across the financial services sector. Hedge funds and trading firms, for instance, are shifting from legacy batch and API-based systems to event-driven architecture, which ensures messages are processed and delivered with minimal delay—even under extreme market stress.

"Every microsecond counts," Gupta noted. "Whether it's FX markets reacting to tariff news or trading strategies hinging on global order flows, firms must act instantly and accurately—or risk enormous losses."

Invoice rejections skyrocket amid economic uncertainty

While capital markets weather the speed of change, corporate finance departments are grappling with a slower, but equally damaging form of tariff fallout: invoice rejection. According to Basware's latest Invoice Rejection Analysis, global rejection rates spiked 273 percent in the first quarter of 2025. Nearly 7 percent of all invoices—2.9 million out of 42 million—were rejected, up from 1.86 percent the previous year.

Jason Kurtz, CEO of Basware, attributes the surge to uncertainty in cross-border trade. "The U.S. tariff situation is creating stress in an unintended place—finance operations and specifically invoice processing," Kurtz said. "Businesses are delaying payments to stockpile cash, reminiscent of the supply chain tactics used during the pandemic."

If this pattern holds through the year, the global economic impact could reach a staggering $186 trillion. That figure reflects both the volume of rejected invoices and the cost of resolving them—estimated at 15 staff hours per rejection. Additional fallout includes late fees, fractured supplier relationships, and heightened vulnerability to fraud.

Payments industry navigates fragmentation, risk

For the global payments industry, the tariff-fueled volatility is more than just an economic concern—it's a structural threat. Dima Kats, CEO of Clear Junction, warned that political protectionism has splintered global regulations and compliance frameworks, particularly for cross-border payments.

"When the world fragments politically, it fragments in terms of regulations and compliance too," Kats said. "That's where it starts to directly affect payments." The result? Higher transaction costs, fewer providers and more risk.

In this high-stakes environment, payments firms are under pressure to reengineer risk strategies while maintaining service reliability and affordability. Some, Kats believes, will be forced to exit entirely; others may thrive by innovating through adversity. "Each crisis is an opportunity," he said. "The bigger the crisis, the bigger the opportunity."

Automation emerges as a lifeline

One consistent solution emerging across sectors is automation. Kurtz pointed to examples like Huntsman Corp., which processes invoices across 25 countries. By deploying automated invoice matching and fraud detection tools, Huntsman saved over $5 million in 11 months and dramatically improved payment accuracy and timing, Kurtz noted.

"Across the market, automation is not just about efficiency—it's becoming a key strategy for managing volatility," Kurtz said, adding that as tariffs muddy compliance waters and delay processing times, automated systems can bring clarity, continuity and confidence back to financial operations.

The road ahead

Looking forward, experts agree that real-time data handling, agile risk mitigation and scalable tech infrastructures will determine which firms emerge stronger from the tariff crisis. For payments providers, capital market players and corporate finance teams alike, the call to adapt has never been more urgent.

As Gupta put it, "Capital markets firms must always ensure they are prepared for volatility. A resilient event-based technology platform is the most robust armor they can wear." And for payments—where trust, timing, and transparency define success—the stakes are higher than ever.

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