Sign in Subscribe
Tariffs

Business Executives Cite Economic and Trade Policies as Major Concerns

Strategic Insights

— 1 min read

As the US grapples with escalating trade tensions and tariffs, business executives are starting to act on their fears, with a significant majority saying they are cutting costs or planning to do so in response to economic uncertainty. A recent survey by PricewaterhouseCoopers found that 48% of US executives cited economic policy as a top factor influencing their strategic decisions, with trade and tariffs ranking second at 41%. The survey, which included 678 executives across various roles, was conducted from May 1-8, before the Trump administration's announcement to relax tariffs on China.

Key Takeaways:

  • 48% of US executives cited economic policy as a top factor influencing their strategic decisions, with trade and tariffs ranking second at 41%.
  • 62% of executives said they are either taking initial steps to cut costs or are already beyond initial steps.
  • More than half of surveyed executives said they are already moving to cut costs as a result of economic and trade policy concerns.
  • 65% of executives say they will renegotiate pricing with suppliers, and 60% will pass tariff-related costs along to customers.
  • Companies are considering unbundling services or intellectual property to reduce tariff bills when transferring products internally between divisions.
  • Roughly half of executives predict the economic volatility will last less than a year, while the other half say it will last longer.

Statistics:

  • 48% of US executives cited economic policy as a top factor influencing their strategic decisions.
  • 41% of executives ranked trade and tariffs as a top three concern.
  • 44% of executives cited artificial intelligence and data regulations as their top concern.
  • 62% of executives said they are either taking initial steps to cut costs or are already beyond initial steps.
  • 65% of executives said they will renegotiate pricing with suppliers.
  • 60% will pass tariff-related costs along to customers.
  • Roughly 50% of executives predict the economic volatility will last less than a year.

Sources:

  • PricewaterhouseCoopers, "100 days in: What's next for business" (May 2025)
  • Chris Desmond, PwC U.S. global trade services practice leader (Chicago)

Read more