Global CEOs confront new era with Trump win, risk of tariffs
Trump set to return to the White House, promising greater US protectionism, higher tariffs and tighter immigration policies.
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CEOs, who for months had tiptoed around questions about a potential change in US power, began grappling with the new order in boardrooms and on earnings calls on Wednesday, where investors sought to price in the effect of a Trump win.
Chief among the topics: How they’re preparing for rising protectionism and sweeping tariffs on 60% of imports from China and 20% from the rest of the world, which economists say could lead to higher prices on everything from microwaves to cars and push companies to reset manufacturing plans and other investments. Businesses leaders are already navigating multiple wars, shipping snafus and climate-related disruptions — all of which have the potential to upend their supply chains.
“We’re in a very different environment than we were pre-pandemic because the supply chain is at much more risk to shocks,” KPMG chief economist and managing director Diane Swonk said in an interview.
Added tariffs may be used as “a tool to deal with other issues, but there is a price associated with it,” she said. “The actual cost is born by mostly US consumers, and companies that can’t pass on those increased costs have to take the hit in margins.”
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