In recent weeks, economic pessimism has been spreading across the United States, primarily stemming from the impact of tariffs and concerns regarding the stability of the market under President Donald Trump's administration.

Following a downturn in consumer confidence, which was influenced by the effects of tariffs and public sector layoffs, investors began withdrawing their savings from the markets, further exacerbating market volatility.

This growing trepidation has now reached the business sector, as indicated by a recent survey conducted by Chief Executive, which assessed the sentiments of 220 American company CEOs.

The survey reflects the lowest level of confidence among business leaders since November 2012, during the final stages of the global financial crisis.

After experiencing a substantial increase in optimism following the presidential elections in November, confidence among U.S. business leaders plummeted significantly in the first week of March.

Respondents to the survey expressed grave concerns regarding the adverse effects of tariffs and disruptions to traditional global supply chains and trade alliances.

One CEO remarked, "We are deeply worried about the impact of the tariffs and other disruptions.

We are observing a weakening demand from our customers, along with rising costs of metals, which is our primary raw material.

We anticipate a challenging future."

The prospect of a recession, once deemed improbable following the announcement of a projected 2.3% annualized GDP growth for 2024 earlier this year, is now being considered a genuine possibility by many CEOs.

Approximately 9% of those surveyed predict a severe recession in the next six months, while 39% foresee a mild recession or economic slowdown.

Only 23% expect clear economic growth in the near term.

Regarding tariffs, the survey revealed that 38% of CEOs believe they will have short-term negative effects, and another 38% anticipate long-term detrimental impacts.

Merely 10% of respondents believe that tariffs will yield any positive outcomes at any point.

The overall sentiment reflects a widespread disapproval among business leaders regarding Trump’s economic policies.

Significant corporations have begun urging the president to reconsider the potentially damaging ramifications of his decisions.

One notable instance came from Tesla, which communicated concerns in a letter to U.S. Trade Representative Jamieson Greer, highlighting the immediate responses from affected countries, including enhanced tariffs on imported electric vehicles.

Tesla noted that no employees felt safe enough to sign the letter for fear of repercussion.

Reports indicate that a wave of business leaders has been contacting the White House to express discontent with Trump's tariff policies.

Their criticisms extend to concerns about the president's erratic decision-making, suggesting that a more predictable approach could facilitate a fairer trade policy.

A White House meeting involving executives from technology giants such as IBM, Qualcomm, and HP also addressed the potential adverse effects of tariff policies on the technology sector.

Despite mounting pressure, Trump's close advisors maintain that he remains committed to his trade policies, which he believes will yield positive outcomes for the U.S. economy in the medium term, despite acknowledging possible short-term negative effects.

The president is optimistic that the creation of a captive domestic market will boost the demand for American products, prompting companies to invest domestically.

However, this approach entails the risk of diminishing demand that could deter businesses from making further investments.

The challenge lies in sustaining internal demand while the supply side adapts to new trade conditions, a precarious balancing act amidst widespread uncertainty.

Consumer confidence has been declining, complicating efforts to maintain robust domestic demand.

According to data from the University of Michigan, early indicators of economic deterioration include a significant decline in household expectations in February and an additional decrease to levels not seen since November 2022, coinciding with the onset of the Ukraine crisis.

Households are increasingly anticipating a substantial inflationary crisis as a direct consequence of the tariffs, predicting an inflation rate of 4.9% in the next 12 months and almost 3.9% in the long term—marking the worst figures since 1993.

The survey indicates that 63% of companies have received notices from suppliers about impending price increases for 2025. In response to rising costs, a majority of CEOs intend to pass on these price hikes to their customers, with 33% planning to increase prices by 2.5% to 5%, and 18% proposing hikes of more than 5%.

Growing fears of stagflation are evident among economic leaders; this scenario of simultaneous inflation and economic stagnation is particularly concerning, as the measures required to address one often exacerbate the other.

For instance, increasing public spending to stimulate the economy could lead to further inflationary pressures.

The implications of Trump's policies may lead the administration toward significant challenges in achieving its stated goals.