US Companies Bracing for Recession as Trade Tensions Bite

A recent survey by KPMG has found that American businesses are feeling the pinch from ongoing trade tensions, with many experiencing declining sales and reporting plans to increase prices in response. The survey, which polled over 600 US businesses across various industries, revealed a stark picture of economic uncertainty. The biggest impact on small and medium-sized enterprises (SMEs) was seen in their trading partners, with nearly 70% reporting changes in supply chain or market conditions due to the tariffs imposed by the US government. This has led to delays, increased costs, and reduced access to critical components and materials. Corporations are also feeling the squeeze, with nearly half of respondents citing declining sales as a major concern, while over 60% reported plans to increase prices in response to rising input costs and decreased profit margins. The price hike is expected to hit consumers hard, with many already struggling to make ends meet. The survey highlights the need for policymakers to address the growing trade tensions before they become irreparable damage to the economy. With companies at a breaking point, it’s clear that more needs to be done to mitigate the effects of the tariffs and support American businesses in their time of need. KPMG’s CEO warns that the US is heading towards recession unless urgent action is taken to address the trade tensions. The company urges policymakers to take swift and decisive action to ease the burden on businesses, protect jobs, and maintain economic stability.