CNBC’s Frank Holland joins 'Power Lunch' to break down the results from the latest CNBC CFO Council Survey.

Donald Trump has signed an order to impose tariffs imports into the U.S. from countries including China, Mexico and Canada.

Global Tariffs

In the most recent CNBC CFO Council Survey, intriguing insights have emerged regarding tariffs and their impact on businesses. Conducted between March 10th and 18th, the survey targeted major corporate financial decision-makers and garnered specific findings about the influence of the Trump administration's tariff policies on businesses and the economy. A notable 20% of the respondents stated that tariffs would raise their costs. Additionally, 15% of businesses indicated that they would pass these costs on to their customers, while another 15% speculated that tariffs would necessitate changes in their global business operations.

Concerns about rising inflation were expressed by 30% of CFOs, who linked this to tariff policies. More than half of the respondents, 55%, admitted that it is too early to determine the full impact, given the uncertainty surrounding which tariffs would remain in place. This uncertainty has influenced decision-making for many businesses, with 85% stating it had a noticeable impact, and 10% describing the impact as significant.

The survey also revealed that U.S. trade policy is perceived as the top risk by 30% of CFOs, with inflation and consumer demand closely following as concerns. These concerns suggest a perceived connection between tariffs and inflation, and the negative impact on consumer demand.

When evaluating the effects of tariffs on the economy, 25% of CFOs strongly agreed that tariffs would be detrimental. While overall sentiments lean towards a more pessimistic view of the broader economic impact, there appeared to be more optimism within specific industries.



CNBC survey: 15% of businesses will pass tariff costs on to customers

All right, let's talk about tariffs and your costs because the CNBC CFO Council survey is out and it's got some very interesting findings about tariffs and costs. Frank Holland is here with more on the survey and the results. Frank. Hey, good afternoon, Brian. So in this exclusive Q1 CFO survey, we asked the biggest corporate financial decision makers about the Trump administration policies and the impact on their business and the economy. 20% said tariffs will raise their costs. 15% said they would pass those tariff costs over to their customers. Another 15% said tariffs will change how their company does business around the world. And then we had 30% saying the tariffs will lead to higher inflation. Now, this last one's a really interesting one. More than half the CFOs we surveyed said it was just too soon to know the full impact of the Trump administration tariffs because they're not sure which ones will actually stick. That answer got a total of 55%, especially interesting in light of recent developments over the last couple of days. So that uncertainty over tariffs has influenced many decisions for businesses. We asked CFOs how they're responding. 85% say the policy uncertainty has had somewhat of an impact on decision making. 10% saying a significant impact. 5% saying no impact at all. We conducted this survey between March 10th and March the 18th. During that time, we had a quarter than expected CPI report, the lowest Michigan consumer sentiment figure in over two years, and a soft retail sales report. It was in this environment that CEOs shared their thoughts about this Trump administration indirectly. 30% saying U.S. trade policy, that was the top risk for their business. And the number two and three answers, they seem to be connected, at least somewhat. They were inflation and consumer demand. Of course, tariffs seen as sparking inflation and the uncertainty overall seems to be hitting consumer demand. Brian and Kelly. Were they, you know, we always joke that the CEOs are optimistic, the CFOs a little bit more pessimistic. Did you pick up on that vibe overall, Frank? Well, you know, it was really interesting. So we had some other questions about tariffs. So one of the answers about tariffs is, do you think that tariffs are going to help or hurt the economy? So we got one answer that was very clear right here. They strongly agree, 25% of them, that it would not help the economy or basically tariffs would hurt the economy. So, yes, a bit more pessimistic about the economy, about the impact of tariffs overall. But when we talked to them about their individual industries, they were a bit more optimistic. But certainly some very strong feelings about these policies and the direction the economy is going in.

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Global Tariffs