Some Of Trump’s Biggest Fans In Business Are Starting To Feel The Uncertainty
Key Points
- Confidence among small business owners fell in February, while uncertainty rose to its second highest.
- President Donald Trump’s rapidly changing tariff policies have exacerbated uncertainty and raised concerns about rising prices.
- Historically, small businesses have praised Trump and his policies, and confidence in his election surged on both occasions.
Small business owners who cheered largely for the Donald Trump election began to feel uncertain about the president’s rapid policy changes.
Optimism among small businesses fell in February, according to a monthly survey released by the National Federation of Independent Businesses on Tuesday. In the 50-year history of the survey, the index of measurement uncertainty rose to its second highest level. Despite the despicable people, business optimism is still above its historical average.
Historically, small businesses have expressed appreciation for Trump and his policies. The confidence index reached its highest point in the first ever election in 2016. The index surged after Trump won reelection last year.
The investigation highlighted Uncertainty In the business world. Trump’s accidental, out-of-time threat to impose tariffs on U.S. trading partners has made the future cloud and cloud Causing concerns about rising costs and inflation focus.
For example, Trump’s tariffs on imported steel and aluminum may be likely Increase the cost of US companies That makes things out of metal.
The survey shows that business owners respond to these developments by raising prices. The net percentage of business gains rose 10 percentage points to 32%, the biggest increase since 2021 and the third highest level on record.
“While the economic perception remains much more constructive than in recent years, recent tariff activity seems to have weakened economic expectations and put up and down pressure on small business prices,” Wells Fargo economists Charlie Dougherty, Jackie Benson and Ali Hajibeigi wrote in a comment.