FOR IMMEDIATE RELEASE
March 17, 2025
Contact: [email protected]
The Trump Administration’s latest tariffs and corresponding retaliatory actions are fueling economic uncertainty, leaving small businesses and consumers concerned about the future. Unpredictable trade policies are forcing business owners to rethink expansion plans and creating supply instability. And, consumers are sharing concerns about higher prices. The result is a growing sense of pessimism across industries, with concerns mounting over long-term economic stability.
New reports show that businesses are struggling to manage rising costs and consumers are cutting back on spending due to rising prices and economic uncertainty. Here’s what experts and industry leaders are saying about the economic impact of tariffs:
Small Businesses Face Economic Challenges
- Nearly 8 in 10 Small Business Owners Expect Tariffs to Increase Costs
78% of small business owners surveyed expect tariffs to increase costs for imported materials and goods and 71% anticipate they would need to raise prices for consumers to offset those costs
[Small Business for America’s Future: Economic Whiplash: Tariff Uncertainty is Freezing Small Business Growth]
- Small Business Optimism Decreases Because of Tariffs
According to NFIB’s latest survey, small business optimism has taken a hit as owners struggle with higher operating costs and declining consumer confidence. The report points to tariffs as a key factor contributing to the uncertainty, making it harder for businesses to remain competitive.
[National Federation of Independent Business (NFIB): February 2025 Small Business Economic Trends Report]
Consumers Grow More Pessimistic
- Tariffs Drive Sharp Decrease in Consumer Confidence
Consumer confidence has fallen sharply as households brace for higher prices on everyday goods. The report cites that tariff-related cost increases are among the primary reasons for the decline, as inflation concerns continue to rise.
[University of Michigan: Consumer Sentiment Drops as Price Expectations Soar]
Market Uncertainty and Economic Volatility
- Tariffs Slowing Economic Growth
Financial analysts at UBS warn that tariff-related unpredictability is making it harder for markets to project future growth. The report suggests that ongoing trade disruptions could slow economic momentum, creating additional risk for investors and businesses alike.
[UBS Analysis: Tariff Anxiety is Creating a Forecasting Dilemma for the Markets]
CEOs Sound the Alarm Over Tariff Impact
- CEOs Express Concerns Over Tariffs
A growing number of CEOs are expressing concerns over the impact of Trump’s economic policies, particularly tariffs. Many business leaders initially supported his administration post-election but are now warning that the instability is damaging business confidence. Sonnenfeld notes that the majority of CEOs view tariffs as inflationary and a potential trigger for a recession, while also citing broader national security concerns tied to economic uncertainty.
[Yale School of Management Associate Dean Jeffrey Sonnenfeld: CEOs Alarmed by Trump’s Economic Policies, See Tipping Point for Collective Voice]
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