CEOs show rising optimism on tariffs as sector responses shift

A new analysis of more than 1,500 corporate earnings calls has revealed a marked increase in positive CEO sentiment concerning tariffs among US-listed companies.

According to data from IoT Analytics, 32% of CEOs expressed a positive outlook for their companies despite ongoing tariffs in early May 2025, representing a significant jump of 23 percentage points compared to 9% in the first week of April 2025.

The research highlights that tariffs have become the most discussed topic in boardrooms during the first quarter of 2025, with conversations around uncertainty up by 49% quarter-over-quarter. These findings are detailed in a research note by IoT Analytics titled "The Evolving Tariff Landscape: Impact on the Economy and Businesses," published in May 2025.

IoT Analytics' review, which assessed transcripts from over 1,500 recent corporate earnings calls, identified that many chief executives are now making significant decisions as a result of tariffs. Around 25% of companies updated their financial guidance in direct response to these trade measures, while 19% announced price increases and 18% reported changes to their operational footprint.

Sector-specific responses vary, with industrial companies and consumer defensive firms in particular reporting notable changes. Nearly 50% of industrial companies have opted to increase prices, while almost half of companies in consumer defensive sectors have updated their financial guidance as a result of tariffs.

"The economic and operational instability stemming from recent tariff changes has proven to be more than a transient disruption; it's a factor now fundamentally altering long-term strategic planning. Even a hypothetical reversion to early 2024 tariff conditions wouldn't immediately undo this embedded uncertainty. Our analysis shows the corporate response: 24% of industrial firms have already reconfigured significant aspects of their operational structures, and 45% have either implemented or are planning price adjustments. Looking ahead, we anticipate businesses will continue to prioritize initiatives that build deeper operational resilience, such as diversifying supply chains and enhancing adaptive capacity, to navigate this sustained period of market volatility," Justina-Alexandra Sava, Market Analyst at IoT Analytics, said, commenting on the findings.

The analysis indicates that the response to tariffs is not uniform across all sectors. Industrial companies are more likely to increase prices and adjust operational structures, while consumer-focused businesses are updating forecasts and guidance to reflect the volatility brought by trade measures.

The researchers also note that the strategic changes being made are seen as more permanent. Many companies, according to IoT Analytics, view the uncertainty created by tariffs as an ongoing challenge, prompting them to invest in strategies such as supply chain diversification and adaptive planning.

IoT Analytics' research suggests that even if there were a return to less restrictive tariff environments similar to early 2024, the lingering impact on planning and corporate operations would remain. Decisions driven by tariffs are expected to have long-term implications for pricing strategies, organisational structures, and risk management approaches in global corporates.

IoT Analytics based its findings on the detailed review of corporate communication during earnings calls, a key avenue through which public companies report their perspectives and planned responses to geopolitical and economic developments.