President Donald Trump is set to meet with the Business Roundtable on Tuesday, amid increasing tensions in the business world and growing concerns about the economic climate. The Business Roundtable, an association comprising CEOs from top companies such as Google, Amazon, and JPMorgan, will convene as recent data reveals a sharp decline in business confidence. A survey indicated that the CEOs' rating of the current business climate fell by 20% in January, dropping from 6.3 out of 10 to a concerning 5. This marks the lowest rating since the spring of 2020.
In addition to the waning confidence among business leaders, consumer confidence dropped by over 6% in February, marking the most significant month-to-month decrease since August 2021. The situation is further exacerbated by President Trump's announcement of increased tariffs on Canadian steel and aluminum. Trump declared that tariffs would double from 25% to 50%, citing Ontario's recent decision to impose a 25% surcharge on electricity exports to several US states.
"Based on Ontario, Canada, placing a 25% Tariff on ‘Electricity’ coming into the United States, I have instructed my Secretary of Commerce to ad [sic] an ADDITIONAL 25% Tariff, to 50%, on all STEEL and ALUMINUM COMING INTO THE UNITED STATES FROM CANADA, ONE OF THE HIGHEST TARIFFING NATIONS ANYWHERE IN THE WORLD," said Donald Trump.
The repercussions of these developments sent shockwaves through financial markets, with the US stock market experiencing a significant downturn. On Monday, the market saw its worst day since September 2022, following Trump's refusal to rule out the possibility of a recession. The Nasdaq plunged by 4% by the end of Monday, and the sell-off continued into Tuesday morning after Trump's tariff announcement. By Tuesday, the Dow had dropped by 1.2%, with declines also observed in the S&P 500 and Nasdaq indices.
These economic challenges come as tariffs of 25% on steel and aluminum imports from other countries are scheduled to go into effect on Wednesday. The financial impact has prompted warnings from various stakeholders about potential chaos within the industry.
"This is going to be a disaster. It’s mass chaos right now,” stated Doug Ford.