CEOs warn tariffs are harming planning, raising costs, and reducing consumer spending, leading to uncertain economic forecasts.

In Short

U.S. company CEOs, including those from American Airlines and Procter & Gamble, are worried about the negative effects of changing tariff policies on their businesses and consumer behaviour.

Many industries anticipate increased costs, potential price hikes for consumers, and a slowdown in economic growth due to uncertainty in tariff regulations.

CEOs from major U.S. companies, including American Airlines and Procter & Gamble, are expressing concerns about the impact of shifting tariff policies on their businesses and consumer behaviour.

Travel has already been affected, with airlines revising their full-year outlooks due to softer leisure travel as uncertainty looms. Procter & Gamble is contemplating price increases on some products in response to these tariffs.

Major automotive groups have urged President Trump to reconsider the 25% tariff on car parts, citing significant increases in costs for consumers. American Airlines’ CEO, Robert Isom, noted that hiring and expansion plans may be curtailed due to the unpredictable economic environment.

Harming investment

CEOs from various sectors, including finance and aviation, highlighted how the instability in tariff regulations is harming investment and economic growth. Some consumers are already reacting by purchasing big-ticket items prematurely, fearful of future price hikes.

Telecom executives from Verizon and AT&T indicated they cannot entirely absorb the costs associated with tariffs, leading to inevitable price increases for consumers. Similarly, home builders like PulteGroup anticipate rising costs for new homes due to tariff-related expenses on materials.

While some executives support certain tariffs, many are concerned about the long-term effects on their operations and the economy as a whole. The International Monetary Fund also projects a slowdown in global growth as a result of these tariff policies.