The Impact of Tariff Uncertainty on Asset Valuations

Navigating Asset Valuation in Uncertain Economic Times

In an increasingly interconnected world, capital asset valuations are shaped by physical wear and tear, along with market sentiment, economic cycles, technology, and regulation, all of which play a crucial role in determining the assets worth. The current uncertain economic times, due in large to the tensions over tariff uncertainty, is forcing businesses to reconsider how asset valuations are approached.

As we move deeper into 2025, a wave of macroeconomic and technological forces is rewriting the rules of asset valuation across sectors, from manufacturing and mining to energy, construction, and transport.

Our industry experts are constantly monitoring the markets and here we explore the factors currently at play and why proactive, strategic asset valuation is more important than ever.

The Global Economy: A Volatile Backdrop for Valuations

A turbulent economic climate is forcing businesses to rethink how they approach asset valuation. The combination of geopolitical instability, shifting trade policies, and persistent inflation is creating a landscape where asset values can fluctuate faster than ever.

For example:

• Recent declines in global stock markets, driven by tensions over tariff uncertainty, shifting U.S. trade policies, and slowing GDP growth forecasts, signal growing caution among investors and asset managers.

• Currency instability, particularly for the U.S. dollar and the Euro, is altering international purchasing power and influencing cross-border asset sales and valuations.

• The OECD’s prediction of global growth easing to 3.1% this year suggests businesses will face prolonged financial pressure.

All of these dynamics directly influence both the market value and the replacement cost of assets.

Automation and Digitalisation: Redefining Value

Automation and digitalisation are another layer in the asset valuation puzzle. As Industry 4.0 technology reshapes operations, the assets themselves, and their valuation, are evolving.

In manufacturing, for example, automated production lines and predictive maintenance software are reducing the importance of an asset’s age and increasing the importance of its capability and digital integration. A five-year-old CNC machine equipped with updated software could out-value a newer, less integrated model.

Similarly, the increasing role of digital twins, real-time asset monitoring, and AI-driven diagnostics in industries like mining, construction, and utilities is shifting valuation from a purely physical inspection to a data-driven process.

Energy & Sustainability: New Variables in Asset Valuation

As the global push for sustainability accelerates, traditional assets in the energy and utilities sectors are undergoing rapid reassessment.

• Aging fossil fuel infrastructure faces steep depreciation as government policy and investor sentiment shift toward renewables.

• Assets that support decarbonisation like wind turbines, battery storage, and smart grids, are seeing higher future earnings potential factored into their valuations.

• Regulatory compliance and carbon performance are becoming embedded in the value equation, especially across Europe and the UK.

Understanding how environmental, social, and governance (ESG) pressures impact asset value is essential for accurate financial reporting and investment planning.

Industry-Specific Factors: One Size Doesn’t Fit All

The nuances of asset valuation differ sharply across industries:

• In construction, lead times on materials, equipment availability, and shifting infrastructure policy can cause major value swings.

• In transport and logistics, new emissions standards and digital tracking capabilities can redefine the lifespan and desirability of assets.

• In mining, commodity price cycles and operational efficiency metrics are as important as the physical condition of machinery.

Having industry-specific insights — not just generic valuation data — is critical to producing relevant, reliable asset assessments.

 The Path Forward

In volatile economic conditions and tariff uncertainty, agility is key. Static asset valuations provide only a snapshot. What’s needed is a more dynamic, market-aware approach — one that accounts for the full picture: economic context, technological advancement, sector-specific factors, and future regulatory change.

At Hickman Shearer, we believe asset valuation is more than a number. It’s an opportunity to unlock business potential.

About Hickman Shearer

At Hickman Shearer, we specialise in delivering exceptional RICS and ASA certified capital asset valuation, management, and sales services. Our expertise span a wide range of global industries, ensuring that we provide tailored and insightful commercial valuations and equipment valuation services to meet your unique needs. With a strong track record of delivering robust and independent advice, Hickman Shearer is committed to supporting businesses in achieving their strategic objectives. Find out more here >> About Us

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