US Business Put Spending Plans on Ice With Tariffs, Tax-Cut Wait

Tariffs and uncertainty have come up more than 600 times during quarterly earnings calls for S&P 500 companies since Trump took office.

Photographer: Alex Welsh /Bloomberg
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President Donald Trump’s November election win drove a surge in business optimism and expectations for capital spending. Four months later, executives have shifted to wait-and-see mode.

Uncertainty around how and when Congress will enact tax legislation, on top of Trump’s ever-changing tariff announcements, is dragging down expectations for investment, surveys from across the country show. Many firms are putting their investment plans, a key driver of economic growth, on hold. That’s one reason why economists are dialing back growth forecasts for this year.