CEOs Warn Trump: Tariffs Threaten US Supply Chains

US business leaders are speaking out and they are doing it loudly.

With President Donald Trump pressing ahead with his protectionist trade strategy, executives across major industries say tariffs are already unsettling supply chains, raising costs and placing the future of American competitiveness at risk.

Among the voices leading the charge is Ford Motor Company’s Chief Executive Officer, Jim Farley.

At Ford’s Pro Accelerate Conference in Detroit, he outlined how Trump’s tariffs have created a major obstacle for carmakers: “It’s frustrating because we’re the most American auto company, and we export the most, and yet, we have this US$2bn headwind, which prevents me from investing even more in the US.” That headwind refers to the increased costs Ford now faces on imported components.

The concern does not sit with Ford alone. A new KPMG survey offers a wider view of the boardroom mood.

Its 2025 US CEO Outlook, which gathers feedback from 400 US-based CEOs running firms that each generate at least US$500m in annual revenue, finds 86% are preparing to raise prices on goods and services in response to tariff-related costs.

Supply chain costs, reshoring and price hikes

Tim Walsh, CEO of KPMG US, says companies are having to act fast.

Speaking to Yahoo Finance’s Opening Bid, he explains: “CEOs are needing to react as it relates to their tariffs (and) their supply chains. They’re doing cost takeout to react to that additional cost.”

That “cost takeout” means shifting strategy, most notably through reshoring – moving supply chains back to US soil.

KPMG’s report finds 85% of CEOs are reworking their sourcing models to cut reliance on imports. Tariffs are particularly altering logistics across manufacturing, automotive, retail and tech.

That said, supply chain reorganisation comes with its own expense and companies are not willing to absorb all the pain.

As Tim adds: “Companies are taking pricing decisions depending on what their consumers can absorb.”

For customers, that translates into higher prices, as businesses pass tariff costs downstream.

According to the report, 89% of CEOs expect tariffs to impact their operations over the next three years. Margins are under pressure, imports are less predictable and the overall logistics footprint is getting a full overhaul.

Tariff policies and global trade disruption

Tariffs are import taxes charged on goods crossing international borders. Trump's latest measures include a 25% tariff on all imported medium- and heavy-duty trucks, announced on his social media platform Truth Social and set to take effect on 1 November.

This follows earlier tariffs from Trump’s so-called “Liberation Day” trade framework, which adds a baseline 10% duty on most imports. Specific rates target China at more than 30%, Brazil and India at 50% and the European Union at 15%, according to a new bilateral trade deal. Certain industries face even sharper hikes – steel and aluminium at 50% and automotive imports at 25%.

For a company like Ford, these percentages add up quickly. Jim explains that tariffs cost Ford as much as 70% on certain parts, which he describes as having to “import literally thousands of dollars for the parts.”

These include components critical to production of the company’s flagship F-150 trucks. In an interview with The Verge’s Decoder podcast, he makes clear: “It’s not a fair fight,” referring to the challenge of competing globally while absorbing steel and aluminium tariff costs.

Still, Ford remains in contact with Washington. Jim says: “We’ve had some really good conversations with the Trump administration,” noting the automaker is pushing for more reasonable tariff structures.

Business sentiment and AI as a stabiliser

Despite these pressures, most CEOs remain upbeat about their companies' future.

KPMG’s data shows that while global economic confidence has dipped to levels last seen during the COVID-19 pandemic, sitting at 68%, optimism about individual company growth is holding strong. Around 79% of executives express confidence in their firm's outlook.

AI plays a growing role in this strategy. Most (71%) of executives say their growth planning combines investment in AI with retention of high-potential staff. While tariffs may hit supply chains, many see AI as a way to build resilience, cut inefficiencies and identify savings.

Yet, this optimism does not cancel the disruption that trade policies are already unleashing. Executives are planning around tariffs, but few believe these measures support long-term growth.

For manufacturers, retail giants and logistics operators alike, the message to Trump is consistent: tariff policy risks undermining US competitiveness and choking off supply chain stability just when many are working to bring operations back home.

Whether Trump listens remains to be seen. That said, from Detroit to Wall Street, the warning is loud: trade barriers come with trade-offs.