US President Donald Trump is set to meet with some of the country’s most powerful business leaders on Tuesday as concerns over tariffs, economic uncertainty, and a recent stock market selloff continue to mount.

The meeting, scheduled to take place in Washington, will be attended by around 100 chief executives from major corporations, including Apple, JPMorgan Chase, and Walmart, Reuters said.

Among the other attendees will be Chuck Robbins, CEO of Cisco Systems and the group’s incoming chair, along with JPMorgan Chase CEO Jamie Dimon and Citigroup CEO Jane Fraser.

The White House has yet to issue an official statement on the meeting’s agenda, but it is expected to focus on economic policy, trade, and regulatory measures.

The discussion comes as the US economy enters what Trump has described as a “period of transition,” with fears of a potential recession weighing heavily on investors.

Market sentiment has been rattled by the president’s unpredictable trade policies, including the possibility of fresh tariffs as early as Wednesday.

Trump’s meeting with CEOs to take place amid low business confidence

Trump’s America First economic approach—characterized by tax cuts, deregulation, and tariffs—has drawn both praise and criticism from business leaders.

While some executives have welcomed policies aimed at boosting domestic investment, others have voiced concerns that trade restrictions could hurt growth and increase inflation.

A recent survey conducted by Chief Executive magazine revealed that CEOs’ confidence in US business conditions has dropped to its lowest level since the onset of the COVID-19 pandemic in early 2020.

CEOs’ rating of current business conditions in the US fell 20% from January, from 6.3 to 5 out of 10, on a scale where 1 is Poor and 10 is Excellent.

This is the lowest level since the spring of 2020, when the pandemic shut down businesses around the world.

This contrasts sharply with a more optimistic assessment by the Conference Board last month.

Delta Air Lines lowered its first-quarter sales forecast on Monday, citing a “recent decline in consumer and corporate confidence” amid growing economic uncertainty.

American Airlines followed suit, warning of deeper losses as demand for leisure travel weakens.

“Industry leaders have responded to President Trump’s America First economic agenda of tariffs, deregulation, and the unleashing of American energy with trillions in investment commitments that will create thousands of new jobs,” said White House spokesman Kush Desai, dismissing negative talk about the outlook, Reuters said.

Meanwhile, the New York Fed’s monthly consumer survey revealed increasing pessimism among households regarding their financial outlook for the year ahead.

Stock market reeling from trade war fears

Financial markets have struggled in recent days, with the S&P 500 falling 2.7% and the Nasdaq plunging 4% on Monday.

Investor confidence has been shaken by Trump’s fluctuating stance on tariffs, particularly his suggestion over the weekend that levies “may go up” rather than down.

Historically, uncertainty surrounding trade policies has led to volatility in equity markets, and analysts warn that further escalations could exacerbate the situation.

“Trump is off to a great start, so it’s disappointing to see his ‘dumb’ (as the WSJ said) tariff policy muddying the waters of where the US and world economies are headed,” Don Ochsenreiter, the CEO of Dollamur Sport Surfaces, told Chief Executive.

With expectations of a trade war reigniting inflation and slowing economy, there is a fear that the “Trump bump” in the markets has become a “Trump slump”.

Inflation and policy shifts remain key concerns

Economists at Goldman Sachs have revised their forecasts, cutting US growth projections for 2025 while raising inflation estimates due to more aggressive tariff assumptions.

The bank’s CEO, David Solomon, is a Business Roundtable member.

Morgan Stanley cut its 2025 GDP growth forecast from 1.9% to 1.5%, noting that trade policies have been more aggressive than anticipated.

“While we expected growth-constraining policies like tariffs and immigration controls to come first, their severity has exceeded expectations,” Morgan Stanley economists wrote in a note to clients.

Trump’s broader economic strategy remains under scrutiny, particularly his commitment to tax cuts and deregulation.

While many investors had hoped for further stimulus, legislative hurdles make sweeping tax reforms difficult to implement.

Besides, Trump acknowledged over the weekend that his tariff strategy could take “a little time” to produce economic benefits.

“I think if we all are becoming a little more nationalistic – and I’m not saying that’s a bad thing, you know, it does resonate with me – that it’s going to have elevated inflation,” said BlackRock CEO Larry Fink, also a Business Roundtable member, at an industry conference on Monday.

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India’s state-owned refiners are in talks with traders selling Russian crude. 

These discussions indicate that there is sufficient supply to meet the current demand, according to a Bloomberg report. 

This eases concerns that the flow of crude could slow down in the coming months due to the recent US sanctions.

Industry executives revealed that offers for discounted Russian oil have surged as the March booking window for April-loading Urals cargoes opens later this week, according to the report. 

This increase is attributed to the availability of non-sanctioned traders, tanker owners, and marine insurance providers who can meet India’s terms.

Indian refineries typically secure their crude oil deliveries from Russia approximately two months ahead of time. 

This advance booking strategy allows for efficient planning and coordination of shipping logistics, refinery operations, and inventory management. 

It also provides refiners with greater price certainty and helps to mitigate the risks associated with volatile oil markets.

Imports from Russia slipped in February

India’s oil imports from Russia fell to their lowest point since January 2023, decreasing 13.4% month-over-month to 1.4 million barrels per day last month, according to Kpler, a data analytics firm. 

This drop followed Washington’s sanctions on 161 tankers, causing middlemen shipping Russian crude to India to temporarily pause cargo offers in January. 

India had declared it would not allow sanctioned vessels to discharge at its ports, leading buyers to avoid them.

Indian buyers had expressed concerns and apprehensions earlier this year regarding the continuity of Russian oil imports. 

They were hopeful that new tankers and alternative intermediaries would emerge to facilitate the continued flow of Russian oil, despite the sanctions and restrictions in place. 

However, they also exhibited caution and pulled back from purchases, deliberately avoiding sanctioned vessels due to the potential risks and uncertainties involved. 

Some Indian buyers were even skeptical about the timely and successful delivery of shipments, fearing disruptions and delays due to the complex geopolitical situation and the potential for unforeseen complications.

Confidence improving 

Executives in the oil industry have reported that confidence and availability are both improving. 

This positive outlook is attributed in part to recent news that President Trump’s advisors are exploring the possibility of lifting or adjusting certain Russian sanctions, including the oil price cap, if progress is made in peace talks. 

These developments have contributed to a more optimistic sentiment in the market.

However, industry insiders caution that the true test of this newfound confidence will be the upcoming month’s bookings for May delivery. 

While the news of potential sanctions relief has been encouraging, the actual level of demand and the willingness of buyers to commit to purchases in May will be a crucial indicator of the market’s sustained recovery.

Meanwhile, Kpler data showed that non-sanctioned vessels, such as the Shenlong, Bourda, and Rangler, which don’t normally transport Russian crude, are now making their way to Indian ports. 

Easing pressure

The emergence of these new vessels is already evident in Indian trade and is contributing to easing pressure.

India has expanded insurance options by granting non-sanctioned Soglasie Insurance Co permission to insure vessels entering Indian ports until February 2026. 

Additionally, India has extended approvals for sanctioned providers Alfastrakhovanie and Sogaz Insurance Co.

Executives noted that the discounts on offered cargoes have decreased to $1-$3 per barrel compared to the benchmark crude. 

This decrease in discounts, from the previous $2.5-$3.5 per barrel, occurred before the implementation of new sanctions.

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After a tumultuous period marked by a sharp stock market decline fueled by anxieties over his aggressive trade policies, President Donald Trump is under increasing pressure to demonstrate a coherent and credible plan for sustained economic growth.

With businesses and investors rattled by the prospect of escalating tariffs, the president must now work to restore confidence and allay fears of a potential recession.

Walking a tightrope: balancing protectionism and growth

Trump is scheduled to deliver an address to the Business Roundtable, a prominent trade association of CEOs, on Tuesday afternoon.

During the 2024 campaign, he successfully courted this influential group with promises of lower corporate tax rates for domestic manufacturers.

However, his current plans to impose tariffs on a wide range of goods from Canada, Mexico, China, and potentially even Europe, Brazil, South Korea, and other countries, are viewed by many as a contradictory approach that could ultimately harm the US economy.

The president’s proposed tariffs on key imports such as steel, aluminum, pharmaceutical drugs, copper, lumber, and computer chips are seen by some as a “massive tax hike” on American businesses and consumers, raising concerns about the potential for stifled demand and increased prices.

Market vote: a clear sign of disapproval

The stock market’s recent performance serves as a clear indicator of investor unease.

The significant selloff observed over the past two weeks places the president in a precarious position, forcing him to reconcile his enthusiasm for protectionist trade policies with his image as a business-savvy leader capable of fostering economic prosperity.

Adding to the pressure, prominent economists are warning of the potential for a significant economic downturn.

Harvard University economist Larry Summers, a former treasury secretary for the Clinton administration, recently estimated the odds of a recession at 50-50.

“All the emphasis on tariffs and all the ambiguity and uncertainty has both chilled demand and caused prices to go up,” Summers posted on X.

We are getting the worst of both worlds – concerns about inflation and an economic downturn and more uncertainty about the future and that slows everything.

A ‘period of transition’: Trump’s promise of future prosperity

In an attempt to assuage public concerns, Trump has acknowledged that his tariff policies may cause a “transition” in the economy, with the aim of incentivizing companies to relocate their factories to the United States to avoid the import taxes.

However, his recent remarks have done little to quell anxieties.

During an interview broadcast on Fox News Channel’s ‘Sunday Morning Futures’, Trump acknowledged the potential for economic disruption, stating:

I hate to predict things like that. There is a period of transition, because what we’re doing is very big. We’re bringing wealth back to America. That’s a big thing. And there are always periods of — it takes a little time. It takes a little time. But I don’t — I think it should be great for us. I mean, I think it should be great.

Market reality: the Trump slump

The promise of future economic prosperity has failed to reassure investors, as evidenced by the S&P 500 stock index’s decline of 2.7% on Monday.

This “Trump slump” has effectively erased the market gains that followed his victory in November 2024, signaling a significant erosion of investor confidence.

While S&P 500 futures pointed to a slight rebound on Tuesday, the gains were not nearly enough to offset the substantial losses incurred on Monday.

With the economic outlook hanging in the balance, President Trump faces a critical moment to articulate a compelling and credible economic vision that can restore trust and calm the anxieties of both the business community and the broader investing public.

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President Donald Trump on Tuesday announced that tariffs on all imports of steel and aluminum products from Canada would be doubled to 50%.

This comes in response to Ontario’s decision to impose a 25% tax on imported US electricity, which has increased trade tensions between the two neighbouring countries.

Both parties continue to engage in a tit-for-tat trade war, despite potential consequences for economic stability and future cooperation.

Tariffs take center stage

President Donald Trump announced on his Truth Social platform that he has directed his commerce secretary to impose an additional 25% tariff on steel and aluminum products from Canada, effective Wednesday morning.

Trump also called on Canada to eliminate what he described as an “Anti-American Farmer Tariff” of 250% to 390% on various US dairy products, labeling it “outrageous.”

He stated his intention to declare a National Emergency on electricity in the affected area.

Additionally, Trump warned of a potential substantial increase in tariffs on cars imported into the US starting April 2 if Canada does not reduce what he termed “other egregious, long-time tariffs.”

Ontario Premier Doug Ford stated in response that he would not back down until Trump removed all tariffs.

Both leaders’ unwillingness to compromise on trade policy, which might impact millions of workers and businesses, might deepen the concerns in the international markets.

Economic ramifications

According to a Reuters report, the announcement of increased tariffs shocked financial markets, resulting in a nearly 1% decline in the benchmark S&P 500 index.

Investors were concerned that these import levies would hinder US economic development and unleash fresh inflationary pressures.

The Canadian dollar also fell versus the US dollar, reflecting the uncertainty created by Trump’s proposals.

Similarly, the S&P/TSX Composite Index on the Toronto Stock Exchange declined by almost 0.5%.

As the trade war drags on, experts have expressed growing fears about a recession in North America triggered by the feud.

70 out of 74 economists surveyed by Reuters across Canada, the US, and Mexico indicated that the likelihood of a recession has increased following the introduction of US tariffs.

The move has also heightened concerns about inflationary pressures in the US, adding complexity to an already challenging economic landscape for policymakers.

US-Canada trade relations

As President Trump and Premier Ford maintain their views, the future of US-Canada trade ties remains uncertain.

The impact of these tariffs goes beyond economic figures; they affect millions of workers in critical industries ranging from agriculture to manufacturing.

While Trump looks adamant in his intention to raise tariffs, economists warn of potential consequences that might spread throughout both economies.

As tensions between the United States and Canada rise, clarity and cooperation will be critical in reducing the risks of a worsening trade war.

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The ongoing trade tension between the United States and Canada saw signs of easing on Tuesday after President Donald Trump suggested he may reconsider plans to double tariffs on Canadian steel and aluminum following Ontario’s decision to suspend a planned electricity surcharge on exports to the US.

Trump’s remarks came shortly after Ontario Premier Doug Ford and US Commerce Secretary Howard Lutnick announced plans to meet in Washington on Thursday.

The two leaders described their earlier discussions as “productive,” with Ford emphasizing the need to deescalate tensions.

Ford acknowledged that “the temperature needs to come down,” calling his decision to halt the electricity surcharge the right move under the circumstances.

The on and off tariff war

Ontario Premier Doug Ford announced on Tuesday that his government would temporarily suspend the planned 25% surcharge on electricity exports to the United States.

The decision follows a conversation with US Commerce Secretary Howard Lutnick, during which both sides agreed to resume trade talks.

Ford described the discussion as productive and emphasized the importance of maintaining calm amid heightened trade tensions.

The Ontario government’s reversal came just hours after Trump announced on social media that he would double tariffs on Canadian metals and threatened steep levies on Canadian automobile parts starting April 2 if Ottawa did not drop tariffs on US dairy products and other goods.

Trump claimed the automobile tariffs would effectively shut down Canada’s auto manufacturing sector.

He also repeated his view that Canada should become part of the US, which he argued would eliminate trade disputes altogether.

Trump’s remarks followed Canada’s announcement that Mark Carney would soon take over as prime minister.

Carney criticized the tariffs as “an attack on Canadian workers, families, and businesses” and vowed to respond in a way that would “maximize impact in the US and minimize disruption in Canada.”

Trump’s tariffs stoke recession fears

Global financial markets have faced heightened volatility and geopolitical concerns following President Donald Trump’s return to the White House, with economists cautioning that the US may be at risk of a recession.

In an interview on Fox News’ “Sunday Morning Futures,” Trump avoided directly addressing the possibility of a downturn, saying, “I hate to predict things like that. There is a period of transition because what we’re doing is very big.”

Markets reacted negatively on Monday, with the Dow Jones Industrial Average sliding over 1,000 points, or 2.4%.

The S&P 500 dropped 2.8%, while the Nasdaq Composite declined 5% as major tech stocks faced significant losses.

Despite concerns, Commerce Secretary Howard Lutnick downplayed recession fears.

Speaking on NBC’s “Meet the Press,” Lutnick said Americans should “absolutely not” expect a downturn, emphasizing Trump’s reciprocal tariff strategy.

“There’s going to be no recession in America. … Global tariffs are going to come down because President Trump has said, ‘You want to charge us 100%? We’re going to charge you 100%,” Lutnick stated.

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