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In addition to high interest rates and continuing inflation, CEOs across the U.S. are struggling with unpredictable tariffs, mass government layoffs and sliding consumer confidence, CNBC reports.
Retailers and other consumer-facing businesses reported that first-quarter sales were lower than expected in recent weeks and anticipate that the rest of the year might bring more economic challenges.
Economists expect Trump’s new tariffs on imports from China, Canada and Mexico will raise consumer prices and reduce spending at a time when inflation remains higher than the Federal Reserve’s target. In February, consumer confidence saw the biggest drop since 2021 and March was also worse than expected.
As job growth slows and unemployment increases, air travel has also shown signs of decline. CEOs of the four largest U.S. airlines—United, American, Delta and Southwest—said they are seeing a downtrend in demand this quarter.
With investors and executives growing more concerned about the impact tariffs will have on consumer spending, companies of all sizes are erring on the side of caution.
