Over two-thirds of CEOs expect the United States to enter a recession in the wake of the potentially damaging tariff policies rolled out by U.S. President Donald Trump, according to a survey released by the American business news network CNBC on Monday.
Trump signed an executive order last Wednesday imposing a 10-percent "minimum baseline tariff" on all imports, with elevated rates for specific countries. The impact of the policy has continued to ripple across the globe and triggered widespread panic on the global financial markets on Monday.
The CNBC survey, conducted among members of the network's CEO Council in the days after Trump announced his sweeping tariffs, revealed that 69 percent of U.S.-based executives believe a recession is inevitable, with over half of the respondents predicting the downturn will occur this year.
As for job cuts, 37 percent of the CEOs said they do anticipate having to lay off workers this year, while a further 14 percent claimed that they are considering downsizing the workforce though that decision hasn't yet been decided.
When asked about how the tariffs may affect U.S. companies, 46 percent of CEOs stated they expect them to have an adverse impact on their business, while 82 percent foresee "resurgent inflation."
The respondents also expressed concern about potential boycotts of American brands in overseas markets as part of an international backlash against Trump's so-called "America First" agenda.
One CEO reportedly described the tariffs as "disappointingly stupid and illogical," while another warned that Trump's move will backfire badly on American manufacturers, saying he has imposed tariffs on "component parts that are simply unavailable in the U.S. and never will be."
Another executive pointed out that the volatility of the U.S. stock market caused by the current tariff policy would greatly reduce U.S. consumer spending, leading to what they termed a "Trump recession."
Over two-thirds of CEOs expect US to slip into recession as tariff fallout continues: survey
