CEOs urge Trump to end trade war policy

The business community's enthusiasm for President Donald Trump's second term has significantly diminished, particularly due to his tariff impositions. These tariffs, which affect nearly every country, have created uncertainty and the potential for a recession, prompting CEOs to urge the president to finalize trade deals he often boasts about.

Goldman Sachs CEO, David Solomon, expressed concerns over the impact of Trump's policies, stating that the uncertainty raised by these actions was harmful to investment and growth. Many CEOs echo this sentiment, revealing that they are holding back investments and cutting costs. This marks a drastic shift from the optimism they had when Trump assumed office, when business leaders anticipated lower taxes, fewer regulations, and a more favorable business environment.

Trump’s announcement of the steepest tariffs seen in a century on April 2 left executives unsettled. Walmart and Target CEOs privately warned that the tariffs could disrupt supply chains, leading to empty store shelves. Virgin Group's Richard Branson also publicly urged Trump to reverse his tariff policy, warning that small businesses and the economy at large would suffer.

Other major U.S. companies, including American Airlines, PepsiCo, and Procter & Gamble, have voiced similar concerns, stating that the uncertainty surrounding tariffs is hurting business planning and consumer sentiment.

The U.S. Chamber of Commerce’s CEO, Suzanne Clark, echoed these concerns, stressing the impact on small businesses and urging the administration to reach trade agreements swiftly to avoid long-term economic damage. Some hope Trump will respond to these pleas, as he did to a letter from auto industry groups in April, where he temporarily alleviated some of the tariffs.

However, not all executives are reassured. GM CEO Mary Barra warned that tariffs could cost her company up to $5 billion this year, while UPS’s Carol Tomé highlighted the toll on small and midsize businesses reliant on imports from China.

A recent survey found that 67% of CEOs do not support the president’s tariff agenda, and 76% believe the tariffs will negatively impact their businesses, with CEO confidence at its lowest point since 2012.