Majority of US CEOs Report Tariffs Hurt Investments Amid Economic Growth

President Donald Trump's tariffs and immigration policies are causing significant uncertainty and concern among U.S. business leaders, hindering investments in manufacturing and infrastructure despite the administration's efforts to stimulate domestic production. A Yale School of Management survey revealed that 62% of CEOs are reluctant to increase investment due to tariffs and economic worries, with many viewing the tariffs as harmful and legally questionable. While some sectors, including pharmaceuticals and technology, have pledged to boost U.S. production, broader economic analyses warn that these tariffs act as a disguised corporate tax, potentially suppressing long-term productivity and economic growth amid a shrinking labor pool. The automotive industry, represented by the American Automotive Policy Council, has criticized the unpredictable expansion of tariffs for increasing costs and creating uncertainty that deters investment. Additionally, experts argue that reviving U.S. manufacturing requires more than tariffs; integrating domestic production into a flexible, hybrid supply chain is essential to adapt to volatile demand, geopolitical disruptions, and climate challenges. Overall, while the Trump administration promotes a pro-growth agenda, many business leaders remain cautious about the trade and economic policies' impact on investment and productivity.