Survey: 8 in 10 companies expect price hikes, layoffs in wake of Trump’s tariffs

Study from Resumetemplates.com finds that many companies anticipate reduced profit margins and growth.

Survey: 8 in 10 companies expect price hikes, layoffs in wake of Trump’s tariffs

HIGH POINT— As President-elect Donald Trump prepares to take office, companies are beginning to gauge and assess the potential impact of expanded tariffs on imported goods.

A new survey from ResumeTemplates.com highlights significant concerns among businesses in this regard. The survey of companies that import goods from abroad reveals that a large majority expect to raise prices and implement cost-cutting measures in response to Trump’s proposed tariffs.

The study found that 82% of companies are likely to increase prices on their products if the tariffs are enacted. Specifically, 41% of respondents said it is “very likely” they will raise prices, with another 41% indicating it is “somewhat likely.” Among those planning price hikes, 41% anticipate an increase of 5% to 10%, while 22% expect hikes of 11% to 15%.

Nearly 90% of companies anticipating higher prices also expect a corresponding decline in customer demand. Of these, 13% expect a significant drop in demand, 37% foresee a moderate decrease, and 40% predict minimal effects on demand.

The survey also reveals that 70% of companies plan to implement cost-cutting measures in response to the financial strain caused by tariffs. Common strategies include layoffs (37%), reduced hiring (64%), and cuts to employee benefits and bonuses (38%). Some companies have already begun to implement these measures, with 41% reporting action taken prior to the tariffs’ potential implementation.

Another notable finding from the survey is that 7 in 10 companies expect tariffs to reduce both their profit margins and growth. Seventeen percent predict a significant reduction in profit margins, while 55% anticipate a slight decrease. Similarly, 16% expect a major slowdown in growth, with 41% forecasting a minor reduction.

To counteract potential increases in costs, 35% of companies are ramping up imports of foreign goods before Trump takes office.

As the future of the proposed tariffs remains uncertain, businesses are bracing for the financial impact, which may lead to higher costs for consumers and a strained job market.

The survey, commissioned by Resume Templates and conducted via Pollfish on November 15, 2024, gathered responses from 500 workers at companies that import goods from abroad who say they are familiar with the potential impact of Trump’s proposed tariffs.