CEOs See Tariffs as a Negative for Capital Investment

“The tariffs are working, just give it time,” say Trump administration officials. “Short term pain—long term gain,” they add, seeking to placate the concerns of the business community. But the majority of those responding to a recent poll aren’t buying it. A survey of 141 CEOs by the Business Roundtable shows 63 percent believe that “recently enacted tariffs — along with other changes to trade policy and uncertainty about future trade actions — will have a moderately or significantly negative effect on their companies’ capital investment decisions over the next six months.”

“Contrary to the assertion that new tariffs and trade restrictions are making our economy stronger, almost none of our companies see it as a positive,” said Business Roundtable President and CEO Josh Bolten in a call with reporters on Monday. “These negative effects have important implications, not only for our member companies but their suppliers, many of which are small and medium-sized businesses.”