In a closed-door meeting, over 100 top business leaders, including CEOs from Fortune 500 companies, have unanimously voiced their concerns about the economic impact of President Donald Trump‘s policies.
CEOs Raise Concerns Over Tariffs, Economic Fallout
The CEOs have expressed their apprehensions about the short-term gains and long-term consequences of Trump’s policies at the 155th Yale Chief Executive Leadership Institute's CEO forum.
The CEOs, irrespective of their political affiliations or industry sectors, are worried about the erosion of the U.S. economic system, Fortune reported.
They are especially worried about how the erosion of national security at critical agencies such as the FBI, CIA, and Pentagon could affect the United States' global standing.
Two-thirds of the CEOs surveyed stated that U.S. tariffs have negatively affected their businesses. They estimate that 80% of the tariffs have been shared equally between domestic firms and U.S. consumers, with the remainder shouldered by foreign counterparts.
To offset these costs, CEOs have attempted to reroute supply chains, adjust operations, and impose hiring freezes or layoffs. But with pre-tariff stockpiles now dwindling, their options are becoming increasingly limited.
Even with the Trump administration's push to revive U.S. manufacturing, the CEOs argue it is unrealistic to expect every global industry to produce goods in the U.S. exclusively for the American market.
“…it is not realistic to expect every industry in the world to be manufacturing products in the U.S. for the U.S," stated one of the CEOs.
On previous occasions, several CEOs, including those of Gap (NYSE:GAP), Ford (NYSE:F), Nike (NYSE:NKE), and Walmart (NYSE:WMT), have publicly expressed similar concerns.
CEOs Warn Of Worker Shortages Amid Manufacturing Push
The concerns expressed by the CEOs reflect the ongoing struggle of American businesses amidst the shifting economic landscape. U.S. manufacturing firms and plants have decreased by 25% between 1997 and 2022 due to globalization and trade agreements.
Furthermore, the anticipated manufacturing boom in the U.S., expected to create nearly 4 million new factory jobs by 2033, faces a significant hurdle. The next generation of workers seems uninterested in these jobs, with only 14% of Gen Z considering a career in industrial work.
President Trump’s vision of a "manufacturing superpower" is at odds with the reality of the U.S. job market. While 80% of Americans believe the country would benefit from more manufacturing jobs, only 25% would actually want one.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
