Tariff Tensions Dominate CEO Conference Amid Economic Uncertainty

Photo Yuri Gripas / Associated Press

Beverly Hills, CA – May 8, 2025 — At the 2025 Milken Institute Global Conference, a gathering of prominent business leaders and investors, concerns over the U.S. administration’s tariff policies took center stage. Executives expressed apprehension about the potential economic repercussions of President Donald Trump’s aggressive trade stance, while also holding out hope for policy adjustments that could alleviate market anxieties.

President Trump’s recent implementation of sweeping tariffs—including a 25% levy on imported vehicles and parts—has unsettled global markets and raised fears of a potential recession. The S&P 500 has experienced significant volatility, with some analysts warning of a bear market if trade tensions persist.

Treasury Secretary Scott Bessent sought to reassure attendees, emphasizing the administration’s commitment to long-term economic growth through its “America First” agenda, which includes tariffs, tax cuts, and deregulation. “Never bet against America,” Bessent urged, highlighting the resilience of the U.S. economy.

However, many executives voiced concerns about the immediate impact of tariffs on business operations. Jane Fraser, CEO of Citigroup, noted that tariffs exceeding 25% could disrupt investment and hiring plans. Apollo Global Management’s Marc Rowan warned that the U.S.’s global reputation for economic stability is at risk.

The pharmaceutical industry, in particular, is bracing for potential sector-specific tariffs. Eli Lilly CEO David Ricks has called on the administration to reconsider its approach, advocating for tax incentives and the extension of the 2017 tax cuts instead of punitive tariffs. Ricks emphasized the importance of swift negotiations with key trading partners to remove trade barriers and support U.S. exporters.

Amid these discussions, some investors are exploring opportunities outside the U.S. At the conference, there was a noted shift in perception, with Europe being viewed as a more promising investment landscape due to more favorable economic conditions and lower asset valuations.

Despite the prevailing concerns, some attendees remain cautiously optimistic. They view the current environment as opportunistic, particularly for mid-market private capital and infrastructure investments. The resilience of the U.S. economy, bolstered by its deep capital markets, continues to attract strategic investments, albeit with a more cautious approach.

As the conference concludes, the business community awaits further clarity on trade policies, hopeful that constructive dialogue and strategic adjustments will mitigate economic uncertainties and foster a more stable investment climate.