CEOs Blast Trump's Tariffs, Predict Recession Now

A recent CNBC survey reveals widespread concern among business leaders regarding the potential for an economic recession, largely attributed to the impact of Trump-era tariffs. The survey, conducted among members of the CNBC Council – a group of 22 chief executives – found that 69% anticipate a recession, with over half predicting it will materialize this year. While most foresee a “moderate or mild” downturn, the sentiment is overwhelmingly negative, with one CEO bluntly labeling it “the Trump recession.”

The findings indicate significant disruption to business planning. Just over a third of CEOs surveyed expect to cut jobs as a result of the economic slowdown, while nearly half are still assessing the necessary adjustments. Those adopting a “wait-and-see” approach are actively modeling worst-case scenarios involving both suppliers and consumer demand.

A particularly scathing critique emerged from one CEO who described the administration as being surrounded by an “incompetent cadre of yes men and women unable or unwilling to offer cogent counsel.” This sentiment underscores a broader frustration with the policy-making process and a perceived lack of informed debate.

The survey also highlights the inevitability of price increases. All responding CEOs indicated they will be forced to raise consumer prices by 5% to 20% to offset the costs of tariffs, with many anticipating suppliers will also bear a portion of the burden.

Despite the administration’s claims that tariffs would incentivize domestic manufacturing, few CEOs surveyed believe this will occur. Concerns center around increased capital expenses delaying or reducing the scale of planned projects, and the impact of tariffs on building materials further hindering construction. Uncertainty surrounding the handling of the trade situation is consistently cited as a major impediment to investment.

The negative outlook is shared by prominent financial figures. Both hedge fund manager Bill Ackman and JPMorgan Chase CEO Jamie Dimon recently voiced concerns about the tariffs’ detrimental effects. However, the administration remains defiant, with President Trump threatening an additional 50% tariff on China following retaliatory measures, further exacerbating market instability. The CNBC report provides a detailed look at the concerns of those at the highest levels of American business, painting a concerning picture of economic vulnerability and a lack of confidence in current trade policies. It’s clear that the tariffs, intended to bolster American industry, are instead creating a climate of uncertainty and potentially pushing the economy toward a significant downturn.