Instant Insight

30-Second Take

• American CEOs are increasingly skeptical about the economic policies of President Trump, just a month into his new term.
• President Trump’s tariff threats and mass government layoffs are causing significant uncertainty and anxiety among business leaders.
• The stock market has dropped, and consumer confidence and spending have declined since President Trump took office.

Quick Brief

2-Minute Digest

Essential Context

President Trump’s latest economic policies have sparked widespread unease among American CEOs. Despite initial support during the 2024 presidential campaign, many are now expressing doubts about the direction of the economy under President Trump’s leadership.

Core Players

• President Trump – President of the United States
• Hassane El-Khoury – CEO of ON Semiconductor
• Jamie Dimon – CEO of J.P. Morgan Chase
• Major corporations like Meta, Amazon, Google, Microsoft, Uber, Toyota, and Apple

Key Numbers

• 25% – Tariff rate imposed on products from Canada and Mexico
• 10% – Tariff rate imposed on products from China
• 15% – Increase in the cost of eggs in January 2025
• $1 million – Amount donated by each of several major corporations to President Trump’s inauguration

Full Depth

Complete Coverage

The Catalyst

President Trump’s recent executive orders, including the imposition of tariffs on Canada, Mexico, and China, have been a significant trigger for the growing dissatisfaction among CEOs. These tariffs, enacted under national emergency powers, have created uncertainty and disrupted business planning.

“You can’t move a factory overnight,” said Hassane El-Khoury, CEO of ON Semiconductor, highlighting the challenges posed by President Trump’s tariff threats.

Inside Forces

The uncertain environment has made corporate leaders hesitant to initiate major deals and investments. The stock market has dropped since President Trump took office, and both consumer confidence and spending have declined in January 2025.

“CEO optimism is fading” due to trade restrictions and mass government layoffs, which threaten the economy, according to Semafor.

Power Dynamics

The relationship between President Trump and corporate America has become increasingly strained. While some CEOs initially supported President Trump’s policies, they are now finding the new administration’s chaotic nature challenging to navigate.

“There’s a pretty clear sentiment in America’s corporate world these days: anxiety,” said Emily Stewart at Business Insider. President Trump’s reputation as a “loose cannon” makes it difficult for businesses to make long-term plans.

Outside Impact

The economic slowdown and higher inflation rates are broader implications of President Trump’s policies. Consumer spending has dropped significantly, with the highest decline in four years reported in January 2025.

The chaos unleashed by President Trump’s administration, including the impact of Elon Musk’s Department of Government Efficiency, is creating a “chilling effect on investment plans and expansion plans,” according to Michael Strain of the American Enterprise Institute.

Future Forces

Looking ahead, CEOs will need to find more comfort in the economic policies to regain their confidence. This includes anticipating business-friendly policies such as regulatory and tax changes.

However, the early signs are not promising. The economy is showing signs of slower growth and higher inflation, according to Fox Business host Larry Kudlow.

Data Points

• Jan. 20, 2025: President Trump issues an executive order temporarily halting offshore wind energy leasing.
• Feb. 1, 2025: Tariffs imposed on Canada, Mexico, and China.
• March 4, 2025: President Trump addresses Congress, emphasizing his commitment to tariffs and other economic policies.
• 9% – Highest year-over-year inflation rate during Biden’s presidency (summer 2022).
• 4 decades – Time since inflation was last as high as in the 1970s and early 1980s.