The ongoing trade war initiated by President Donald Trump has sparked significant concern among business leaders. In a time when uncertainty dominates the global economy, many prominent figures have publicly criticised the tariffs and their potential long-term impact. Once supporters, these executives are now voicing deep concerns about the future of the US economy and its impact on businesses, both big and small.
In this article, we’ll explore the voices of major CEOs, investors, and economists who have called for a change in course and a reevaluation of Trump’s tariff strategy. As we move deeper into 2025, the economic ramifications of these policies are becoming clearer, and business leaders are pushing back. Here’s why the stakes are so high, and what’s at risk.
The Growing Consensus: Trade War Will Lead to Economic Slowdown
Over the past few weeks, the rhetoric around Trump’s trade war has shifted. CEOs who once supported the idea of tariffs as a means of securing better trade deals are now expressing their concerns. In a recent CNBC survey of CEOs, 69% said they expected a recession, and 37% believed that the economic conditions would force them to cut jobs in the coming year.
This shift in sentiment is significant. CEOs like Jamie Dimon of JPMorgan Chase, once a vocal supporter of Trump’s tariff strategy, have recently changed their stance. In his annual shareholder letter, Dimon admitted that the tariffs were contributing to slower growth by increasing input costs and demand for domestic products. As a result, the likelihood of a recession has risen, with JPMorgan raising their forecast for a recession from 40% to 60%.
The Pain of Rising Input Costs and Consumer Prices
One of the central issues business leaders are pointing to is the rising cost of inputs. As tariffs are imposed on foreign goods, the cost of raw materials, machinery, and even finished products rises. This increase in input costs affects all businesses, but it disproportionately hurts small and medium-sized enterprises (SMEs) that lack the resources to absorb these costs.
Richard Branson, the billionaire co-founder of Virgin Group, has been outspoken about the damaging effects of these trade policies. He warned that US consumer prices will rise as a result of the weakening dollar, which will further strain the economy. Branson also pointed out that countless SMEs are already going bankrupt as a direct result of the tariffs, exacerbating the economic downturn.
In the context of a global economy, rising input costs create a domino effect, leading to inflation. This reduces consumer purchasing power and affects demand. For businesses, it becomes harder to pass on costs to customers, meaning profit margins shrink. This is a serious concern for anyone involved in global trade and is one of the primary reasons CEOs are calling for a course correction.
The Shift in Perspective: CEOs Reverse Their Stance
What’s especially noteworthy about the situation is how quickly some of the biggest names in the business world have changed their views. Bill Ackman, the billionaire investor and CEO of Pershing Square Capital, has been a vocal critic of the trade war, urging the Trump administration to pause the implementation of tariffs. Ackman stated that the global economy is being dragged down due to “bad math” in tariff policy. He echoed a common sentiment among business leaders who now believe that the short-term benefits of tariffs are being outweighed by long-term economic harm.
Even Elon Musk, a member of Trump’s advisory circle, has distanced himself from the administration’s trade policies. Musk has long been a supporter of free trade and has now come out in favour of a zero-tariff policy between Europe and the United States. This marks a significant break from the president’s approach, highlighting the growing rift between business leaders and the government’s stance on tariffs.
Musk’s stance reflects broader concerns about the effects of protectionism on the global economy. In a recent speech, Musk suggested that Europe and the US should move towards zero tariffs, creating a free trade zone between the two regions. This would, in his view, help to reduce trade barriers, improve global economic stability, and ensure sustainable growth.
The Bigger Picture: Global Repercussions and the Need for Change
What’s happening in the US doesn’t exist in a vacuum. The tariffs have far-reaching consequences that extend beyond the borders of the United States. The imposition of higher tariffs on goods from China and other countries has caused a global ripple effect, which is contributing to economic uncertainty worldwide.
Even investors like Stanley Druckenmiller, a well-known billionaire investor, have weighed in on the matter. He expressed his opposition to tariffs exceeding 10%, which he made clear in a post on X (formerly Twitter). Druckenmiller, who has been an advocate for free-market economics, believes that excessive tariffs will only hurt the US and its trading partners.
This shift in perspective from business leaders and investors is driven by the growing recognition that tariffs are not the solution to trade imbalances. Instead, these policies create an environment of uncertainty that affects decision-making, hampers investment, and ultimately slows down economic growth.
What Needs to Change?
As we look ahead to 2025, business leaders are calling for a strategic reset when it comes to trade policy. The overwhelming consensus is that tariffs and trade wars only serve to undermine business confidence and delay economic recovery. Here are a few key areas where change is needed:
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Re-evaluation of Tariff Strategy
A broad consensus is building that Trump’s tariffs are counterproductive. Business leaders are urging for a pause and for more evidence-based decision-making on trade policy. As many CEOs and economists have suggested, this would give businesses the certainty they need to plan and invest. -
Free Trade Agreements
To mitigate the effects of tariffs, business leaders like Elon Musk are calling for free trade agreements between the US and key global partners, including Europe. These agreements could help reduce trade barriers, lower input costs, and support sustained economic growth. -
Increased Investment in Domestic Innovation
With global supply chains under pressure, businesses should focus on enhancing domestic innovation and technological development to remain competitive without relying on foreign imports. -
Clear, Consistent Government Policy
One of the biggest concerns voiced by CEOs is the lack of clarity and consistency in government policies. A stable, predictable regulatory environment is essential for businesses to thrive.
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