President Trump’s trade policies are causing ripples across the U.S. economy, with a recent survey revealing that one in four businesses have reduced their hiring plans due to ongoing trade disputes.

The quarterly survey, conducted by Duke University and Federal Reserve Banks, shows a significant decline in economic optimism among chief financial officers.

The uncertainty surrounding tariffs has created a “deer-in-headlights moment” for many firms, according to John Graham, professor of finance at Duke’s Fuqua School of Business. “Tariffs are first-order concern. At least in the short run, they are a great risk,” Graham told CNN.

The survey, conducted from Feb. 18 to March 7, found that 25% of CFOs have cut their 2025 hiring plans due to tariffs, while 70% reported no change. Similarly, a quarter of CFOs have reduced their capital spending plans for the year.

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White House Defends Economic Agenda

The White House defended the Trump’s economic agenda, stating, “President Trump used tariffs to unleash historic economic, investment, job, and wage growth in his first term with no inflation, and he’ll repeat the magic again in his second term.”

However, the impact of tariffs is being felt by businesses like First Rate Blinds. CEO Ryan Messenger, who voted for Trump in 2024, expressed concern over the 20% increase in costs for some products imported from Mexico.

“I’m losing sleep over tariffs. A president has never made me lose sleep before,” Messenger said.

The ongoing trade disputes have also affected consumer confidence, which plunged in March to its lowest level since January 2021, according to a report by The Conference Board.

Former Trump economic adviser Stephen Moore suggested a change in focus: “My policy advice for Republicans: Stop talking about tariffs and get the tax cuts done quickly.”

Read more at CNN Business