A rising number of supply chain managers say that President Donald Trump’s tariffs and associated costs are leading to layoffs and a lower confidence about investments needed to grow their businesses.
Double the percentage of supply chain managers (32%) are reporting layoffs as compared to April (16%), according to a new survey conducted by the Association for Supply Chain Management and CNBC.
“Tariffs just don’t hit the balance sheet. They hit the people,” said Abe Eshkenazi, CEO of ASCM. “We’re seeing layoffs because of companies trying to manage their cost structure. If you don’t have the necessary resources and the capabilities and knowledge of talented staff, it will have a long-term impact.”
While the national unemployment rate has only ticked higher rather than spiked since April when Trump’s broad tariffs were first introduced, job growth last year was at its lowest outside of a recession since the early 2000s, according to the December jobs report issued by the Bureau of Labor Statistics. What some are calling a “hiring recession” is typified by rising long-term unemployment and anemic job creation, which has stalled since April.
A majority of respondents (65%) reported at least a 10-15% increase in costs, which according to ASCM, can be a “major shock” reshaping budgets, strategy, and the viability of some businesses. Thirty-four percent of those respondents cited an increase in costs greater than 15%.
