CFOs flag tariffs and inflation as top threats ahead of 'Liberation Day'
As President Trump prepares to announce a new wave of reciprocal tariffs this week—dubbed “Liberation Day” by the administration—concerns are mounting across corporate finance departments.
The White House’s position is that revenue from tariffs will help fund future tax cuts, but many CFOs are focused on the more immediate risks: rising costs, inflation, and an uncertain macroeconomic outlook.
Inflation pressures are already apparent. The U.S. Personal Consumption Expenditures Index, excluding food and energy, rose 2.8% in February year-on-year—up from 2.7% in January.
The figure is closely watched by the Federal Reserve, which left interest rates unchanged in March, maintaining the current target range of 4.25% to 4.5%.
Fed officials have pencilled in two rate cuts for the year but have acknowledged the possibility that tariff-induced inflation could be “transitory.”
However, finance leaders are less confident. A recent CNBC CFO Council survey revealed that 90% of CFOs expect tariffs to trigger “resurgent inflation.” Nearly half of respondents do not anticipate inflation returning to the Fed’s 2% target until 2026 or later.
These findings echo the sentiment from the latest edition of “The CFO Survey,” produced by Duke University’s Fuqua School of Business and the Federal Reserve Banks of Richmond and Atlanta.
Nearly one-third of CFOs ranked trade policy and tariffs as their most pressing concern, followed by inflation (19%) and economic uncertainty (14%)—the latter making the top five concerns for the first time.
In response, companies are already adjusting their strategies. About 30% of surveyed firms said they plan to diversify supply chains, while 20% have expedited purchases or begun sourcing from new suppliers.
Others are preparing to pass rising costs on to customers, a tactic that carries reputational and retention risks. Deloitte recommends clear communication with customers and offering lower-cost product options within brand families to help maintain market share.
As “Liberation Day” looms, CFOs are navigating a precarious path—balancing short-term cost pressures against long-term strategic resilience. While the administration remains bullish on the economic upside of tariff revenue, many finance leaders are preparing for a more complex set of outcomes.