Trump holds talks with top CEOs amid low confidence, recession risks

US President Donald Trump is set to meet with some of the country’s most powerful business leaders on Tuesday as concerns over tariffs, economic uncertainty, and a recent stock market selloff continue to mount.

The meeting, scheduled to take place in Washington, will be attended by around 100 chief executives from major corporations, including Apple, JPMorgan Chase, and Walmart, Reuters said.

Among the other attendees will be Chuck Robbins, CEO of Cisco Systems and the group’s incoming chair, along with JPMorgan Chase CEO Jamie Dimon and Citigroup CEO Jane Fraser.

The White House has yet to issue an official statement on the meeting’s agenda, but it is expected to focus on economic policy, trade, and regulatory measures.

The discussion comes as the US economy enters what Trump has described as a “period of transition,” with fears of a potential recession weighing heavily on investors.

Market sentiment has been rattled by the president’s unpredictable trade policies, including the possibility of fresh tariffs as early as Wednesday.

Trump's meeting with CEOs to take place amid low business confidence

Trump’s America First economic approach—characterized by tax cuts, deregulation, and tariffs—has drawn both praise and criticism from business leaders.

While some executives have welcomed policies aimed at boosting domestic investment, others have voiced concerns that trade restrictions could hurt growth and increase inflation.

A recent survey conducted by Chief Executive magazine revealed that CEOs’ confidence in US business conditions has dropped to its lowest level since the onset of the COVID-19 pandemic in early 2020.

CEOs’ rating of current business conditions in the US fell 20% from January, from 6.3 to 5 out of 10, on a scale where 1 is Poor and 10 is Excellent.

This is the lowest level since the spring of 2020, when the pandemic shut down businesses around the world.

This contrasts sharply with a more optimistic assessment by the Conference Board last month.

Delta Air Lines lowered its first-quarter sales forecast on Monday, citing a "recent decline in consumer and corporate confidence" amid growing economic uncertainty.

American Airlines followed suit, warning of deeper losses as demand for leisure travel weakens.

"Industry leaders have responded to President Trump's America First economic agenda of tariffs, deregulation, and the unleashing of American energy with trillions in investment commitments that will create thousands of new jobs," said White House spokesman Kush Desai, dismissing negative talk about the outlook, Reuters said.

Meanwhile, the New York Fed’s monthly consumer survey revealed increasing pessimism among households regarding their financial outlook for the year ahead.

Stock market reeling from trade war fears

Financial markets have struggled in recent days, with the S&P 500 falling 2.7% and the Nasdaq plunging 4% on Monday.

Investor confidence has been shaken by Trump’s fluctuating stance on tariffs, particularly his suggestion over the weekend that levies “may go up” rather than down.

Historically, uncertainty surrounding trade policies has led to volatility in equity markets, and analysts warn that further escalations could exacerbate the situation.

“Trump is off to a great start, so it’s disappointing to see his ‘dumb’ (as the WSJ said) tariff policy muddying the waters of where the US and world economies are headed,” Don Ochsenreiter, the CEO of Dollamur Sport Surfaces, told Chief Executive.

With expectations of a trade war reigniting inflation and slowing economy, there is a fear that the "Trump bump" in the markets has become a "Trump slump".

Inflation and policy shifts remain key concerns

Economists at Goldman Sachs have revised their forecasts, cutting US growth projections for 2025 while raising inflation estimates due to more aggressive tariff assumptions.

The bank's CEO, David Solomon, is a Business Roundtable member.

Morgan Stanley cut its 2025 GDP growth forecast from 1.9% to 1.5%, noting that trade policies have been more aggressive than anticipated.

“While we expected growth-constraining policies like tariffs and immigration controls to come first, their severity has exceeded expectations,” Morgan Stanley economists wrote in a note to clients.

Trump’s broader economic strategy remains under scrutiny, particularly his commitment to tax cuts and deregulation.

While many investors had hoped for further stimulus, legislative hurdles make sweeping tax reforms difficult to implement.

Besides, Trump acknowledged over the weekend that his tariff strategy could take “a little time” to produce economic benefits.

"I think if we all are becoming a little more nationalistic - and I'm not saying that's a bad thing, you know, it does resonate with me - that it's going to have elevated inflation," said BlackRock CEO Larry Fink, also a Business Roundtable member, at an industry conference on Monday.