- 69% negatively impacted by tariff-driven currency volatility
- 83% have experienced losses due to unhedged risk
- 91% hedge risk, up from 82% in 2024 and 81% in 2023
London, 16 July 2025 – A new report from advanced FX and cash management solutions provider MillTech, has revealed that nearly seven in ten (69%) North American corporates have seen their profitability or competitiveness in international markets negatively impacted by currency volatility caused by US tariffs. Over four-fifths (83%) have experienced recent losses due to unhedged FX risk.
The MillTech North American Corporate FX Report 2025 analyses the findings from a survey of 250 senior finance decision makers at corporates across the US and Canada, revealing how they are responding to tariff-driven volatility, accelerating geopolitical risk and heightened market volatility, and leveraging AI and automation.
Tariffs have become one of the biggest economic flashpoints of 2025, dominating headlines and driving volatility across global markets, causing issues for North American firms, especially those that don’t hedge their FX risk. As a result, there are high hedging levels, with 91% currently hedging their FX risk, up from 82% last year and 81% in 2023. This is despite 94% reporting higher hedging costs, up sharply from 73% last year, with an average increase of 76%.
Firms are adjusting their hedging strategies to manage tariff-driven volatility, with 64% planning to increase hedge lengths. Average hedge tenors remain at a three-year low of just 4.9 months, suggesting the shift is still early or selective.
Nearly nine in ten (87%) firms have made changes to their sourcing and manufacturing strategies in ways that impact their FX transactions as a result of tariffs. Despite tariff concerns and changes they have been forced to make, the vast majority of firms (84%) remain optimistic, suggesting they believe the near-term tariff pain will be worth the long-term gain.
Other key findings include:
Biggest tariff concerns – The top concerns are the impact on currency values (36%), high levels of uncertainty preventing major decisions from being made (34%), and counterparty risk in hedging transactions (33%).
Firms that don’t hedge are now considering it – Of the firms that don’t currently hedge their FX risk, more are considering hedging in 2025 (65%) than last year (51%). The top reason for not hedging was burdensome infrastructure, cited by 83% of firms, up from just 20% last year, suggesting they want to hedge but lack the tools.
FX option adoption – The use of FX options is becoming more frequent, with 86% of corporates now incorporating them into their hedging strategies.
Fresh FX challenges for corporates – Demonstrating best execution (33%) was the top challenge for North American corporates, followed by fragmented service provision (32%) and manual processes (30%). 94% also reported higher hedging costs, spiking from 73% in 2024.
FX goes digital – Firms are relying less on phone and email for booking FX trades. In 2025, 29% of firms use the phone to book FX transactions, down from 33% in 2024 and 35% in 2023. Just 24% use email for transactions, down from 27% in 2024 and 34% in 2023.
Shifting priorities – Corporates refocused their attention towards FX costs in 2025, with transparency of costs (34%) being the top priority, while automation (32%) and the credit ratings of FX counterparties (29%) also ranked highly.
The push for automation and AI – Every business surveyed was found to be considering automating parts of their FX processes, with the most popular use case being price discovery (34%). 100% also reported to be exploring how AI can be used to enhance their FX operations, and the top use case was found to be process automation (43%).
Outsourcing drive – 100% of firms outsource some part of their FX process. The main drivers are access to specialized expertise, enhanced efficiency and automation, and scalability and flexibility in operations (30%).
Eric Huttman, CEO of MillTech, commented: “Many corporate CFOs have traditionally treated FX like a duck in the corner of the room. They pay it little attention until it starts quacking loudly. In 2025, that quacking is impossible to ignore. North American businesses are facing an increasingly volatile landscape, with currency shocks and trade disruptions affecting their competitiveness and profitability.
“This has served as a wake-up call, and more firms are taking out insurance in the shape of FX hedging to protect their bottom lines, even despite hedging costs soaring. Many are reassessing their entire FX risk management infrastructure, ditching manual processes and adopting technology like AI and automating manual processes to improve speed, accuracy and decision-making.
“For too long, currency risk has been treated as a background issue, quietly managed by treasury teams while broader business priorities took centre stage. But in an era where currency swings can erase quarterly gains, proactive FX risk management is essential. Businesses can no longer afford to ignore the duck. It’s time to listen, prepare and build smarter, more resilient FX strategies.”
To find out more about North American corporates’ evolving FX hedging strategies, the effect of tariffs and the drive for automation, as well as regional comparisons between the US and Canada, download the report here: https://milltech.com/resources/currency-insight-and-education/the-milltech-north-america-corporate-cfo-fx-report-2025
About MillTech
MillTech provides advanced FX and cash management solutions to increase market access, reduce costs and automate manual workflows.
With a focus on automation, integration and connectivity, MillTech has pioneered an independent risk management and liquidity solution for fund managers, institutions and global corporates, which is purpose-built to deliver best execution at scale.
MillTech provides an end-to-end operational workflow that enables automation, standardisation and cost transparency on all FX transactions and cash movements.
Its highly secure platform centralises all client FX and cash activities to enhance oversight whilst increasing control, all at no additional cost. It offers quick onboarding routes, multi-bank best execution and hedging management services.
Headquartered in London, the world’s largest FX hub, MillTech provides services to clients in the United Kingdom, United States, Canada, Switzerland, Belgium, Denmark, Ireland, Luxembourg, Norway and Liechtenstein. MillTech is authorised and regulated by the UK’s Financial Conduct Authority (FCA FRN 911636) and registered with the USA’s National Futures Association (NFA).
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Important disclosures
*This white paper examines the data and results of a survey conducted by Censuswide on MillTech between 2 June and 10 June 2025 of 250 CFOs, treasurers and senior finance decision-makers in corporates (described as those who have a market cap of $50mil up to $1 billion), in North America.
*The full list of job titles surveyed and included within this report is as follows: Accountants, Chief Financial Officers (CFO), Financial Analysts, Financial Accountants, Financial Consultants, Financial Manager, Analysis Managers and Treasurers.
*Countries surveyed include the USA and Canada.
MillTech is the trading name of Millennium Global Treasury Services Limited (MGTS) and MillTechFX Americas Inc. MGTS is authorised and regulated by the Financial Conduct Authority (FRN 911636) and is a company registered in England and Wales with company number 11790384. The registered address is 88 Wood Street, London, EC2V 7QR, United Kingdom.
MillTechFX Americas Inc is registered with the National Futures Association as a Commodity Trading Advisor (NFA ID: 0545635).
This document, including the information provided herein, is provided for information purposes only and does not constitute an invitation or offer to subscribe to or purchase any of the products or services mentioned.
The information contained is intended for Professional Clients only. MillTech does not target retail clients as the products offered by MillTech are not suitable for or made available to retail clients.
The information herein is not intended to provide, and should not be relied upon for, accounting, legal or tax advice or investment recommendations. You should consult your investment, tax, legal, accounting or other advisors.
The views expressed by individuals are their own and not those of the firm. There can be no assurance that professionals currently employed by MillTech will continue to be employed by MGTS.
*Group Hedged assets as of 31 January 2025 and is a combination of USD 15.7 billion hedged assets (all strategies that include hedging, up to the maximum amount that can be hedged) managed by Millennium Global Investments Limited and USD 12.6 billion managed by MillTech. Millennium Group comprises Millennium Global Investments Limited and Millennium Global Treasury Services Limited.
