Latest news with #economicuncertainty
Bloomberg
12 hours ago
- Business
- Bloomberg
Group That Won Trump Trade Ruling Wants Tariffs Halted During Appeal
A group of small businesses who won a ruling that most of President Donald Trump's global tariffs are illegal want them blocked during the administration's appeal, saying they were suffering immediate harm from economic uncertainty. In a Monday filing in the US Court of International Trade, which last week ruled that Trump exceeded his authority in imposing broad trade levies, the group opposed the administration's request that the tariffs remain in place during its appeal. The appellate process will likely continue for months, so a pause that long would be a win for the White House.
Forbes
19 hours ago
- Business
- Forbes
Prioritize Cost Optimization Over Cost Cutting To Achieve Meaningful Results
As pressure to reduce costs increases, CFOs have an opportunity to deepen their cross-functional influence and fortify their advisory role to the CEO and other C-suite leaders. Capitalizing on this opportunity likely calls for some CFOs to forget everything they know about traditional cost cutting while embracing—and instilling throughout the organization—a mindset focused more on sustainable cost optimization. Prioritize cost optimization over cost cutting to achieve meaningful results The stakes of this gambit are exceedingly high. Economic uncertainties related to tariffs, supply chain upheaval, inflation and/or stagflation, and geopolitical conflicts are among numerous issues that have boards and C-suites taking hard looks at their cost structures. At the same time, the risks associated with cost-cutting missteps have never been higher. A blanket across-the-board cut can undermine the organization's execution of strategic initiatives, leading to declining employee morale, engagement and productivity and driving highly skilled, difficult-to-hire talent to competitors. Trimming the budget of a technology modernization initiative can delay the adoption of vital artificial intelligence (AI) applications while subjecting the company to a higher risk of being too slow in pivoting to disruptive markets. Indiscriminate or percentage-based cost cuts can compromise service quality, scale back innovation, hamstring future growth and even impair the organization's long-term viability. Bottom line, in today's fast-moving business climate, old-school cost cutting can, while perhaps achieving a short-term quarterly objective, do more long-term harm than good. Similarly, drastic workforce reductions and other one-off slashing don't work well for very long. There is a better way. Multiple surveys of business leaders find that only 40-60% of traditional, one-time cost-reduction initiatives achieve their initial goals. A Gartner study indicates that just 11% of organizations are able to sustain cost cuts over a three-year stretch. On the other hand, cost optimization initiatives are proving to be increasingly beneficial. For instance, according to the results of Protiviti's most recent Global Finance Trends Survey of CFOs and finance leaders, 60% of publicly held organizations have achieved measurable, meaningful progress in their cost optimization efforts by utilizing cloud-based systems. And that's just one example. We're seeing substantial savings from deploying technology to automate processes. Renegotiating supplier contracts, improving inventory management and implementing energy-efficiency measures (in capital-intensive industries) are examples of other cost optimization tactics. Cost optimization relates to the CFO's responsibility to nurture and preserve the organization's financial health. Think of the approach as a perpetual efficiency play that continually rebalances the right cost structure with an eye on revenue-generation and profitability objectives. Its focus reaches well beyond cost cuts. While cost optimization efforts target the same pain points as traditional, more reactive cost cutting, these pain points are assessed in a more thoughtful and holistic manner: How do these costs influence our pursuit of strategic objectives? How would a potential cost reduction affect our product and service offerings, workforce, customer experience, ability to innovate, and growth prospects? Advanced data analyses and AI tools can help address those questions and refine the search for 'smarter' opportunities for cost savings. Consider this scenario: A traditional cost reduction play might call for a business process to be offshored, end of story. A cost optimization approach might result in that same process—let's say accounts payable (AP)—being offshored, but with some critical differences. A smaller AP team might remain onshore to handle exceptions and manage relationships with high-value suppliers and vendors. That team also might receive training in risk management and the use of AI applications to help them operate more effectively and efficiently. Plus, the upskilling necessary to enable these additional job functions could be funded by a portion of the cost savings realized from moving the bulk of the AP group offshore. As finance leaders create cost optimization playbooks, they should consider how the following actions can benefit their organizations in the near- and long-term. Perhaps the biggest difference between traditional, reactive cost cutting and cost optimization is that the latter should be performed continuously rather than in response to economic and marketplace swings. The point is clear: Optimizing costs is as much a good idea in the cool of the day when times are good as it is in the heat of the moment when times are challenging. When CFOs stop their organizations from vacillating between across-the-board cuts to focus on increasing profitability on the one hand and investment infusions designed to stimulate growth on the other hand, cost optimization stands a better chance of becoming a standard operating procedure. Indeed, it becomes a key pathway to sustaining the organization's agility, resilience and long-term viability.
CNN
21 hours ago
- Business
- CNN
Big brands are staying quiet this Pride Month
For the last several years, Pride Month was a splashy marketing event for big brands. Stores adorned windows with rainbow flags, displayed LGBTQ-themed t-shirts and coffee mugs at their entrances, changed their logos on social media accounts, and spotlighted donations to LGBTQ rights groups. But this Pride Month, many retail chains and brands are going quiet. Companies are treading lightly, avoiding prominent campaigns and visible public support. Thirty-nine percent say they plan to scale back public Pride Month engagements this year, according to a survey of more than 200 corporate executives by Gravity Research, a risk management advisory. That includes sponsoring Pride events, posting supportive messages of LGBTQ rights on social media and selling Pride-themed merchandise. Consumer brands are wary of provoking right-wing customers and activists, and they fear reprisals from President Donald Trump's administration. Federal agencies have threatened to investigate companies with diversity, equity and inclusion programs. Many businesses are tightening their advertising spending due to economic uncertainty over Trump's tariffs. But businesses cited pressure from the Trump administration as the primary reason for changing their Pride Month approach, according to the survey. 'It's clear that the administration and their supporters are driving the change,' said Luke Hartig, the president of Gravity Research. 'Companies are under increasing pressure not to engage and speak out on issues.' The subdued approach marks a shift for businesses, which used to turn the annual June celebration of LGBTQ Americans into a branded holiday. It's part of a broader pivot in corporate America, with many businesses scrapping some of their programs to advance diversity in the workplace under pressure from the Trump administration and Republican activists. Advocates for gay, lesbian and transgender Americans say the Trump administration's opposition makes it harder for businesses to compete, innovate and attract talent. They also warn that companies risk losing business by downplaying support for their growing number of gay, lesbian and transgender customers and workers. The proportion of American adults who identify as LGBTQ has risen to 9.3% of the population. 'By weaponizing federal agencies like the EEOC and the Justice Department to intimidate companies that support LGBTQ+ inclusion, this administration is creating an anti-business, anti-worker atmosphere,' said Eric Bloem, the vice president of corporate citizenship at the Human Rights Campaign Foundation. Many businesses have stopped participating in the Human Rights Campaign's scorecard on corporate policies and benefits for LGBTQ employees due to backlash. 'Companies that show up only when it's convenient, or backtrack the moment there's political pressure, risk losing trust and credibility,' Bloem said. Companies are actively preparing for Pride-related backlash this year from conservative activists and consumers. Sixty-five percent of companies in Gravity Research's survey said they were preparing strategies to respond to blowback. A growing number of chains, including Walmart, Target, Kroger, have also been warning investors about the risks of consumer boycotts over corporate positions on social issues. Anger from the right over Bud Light and Target's marketing efforts, in particular, has had a chilling effect on corporate strategies for Pride Month. Bud Light sales tanked in 2023 after the company's partnership with transgender influencer Dylan Mulvaney sparked anti-trans backlash and boycotts. Bud Light's tepid response also angered LGBTQ rights advocates. In 2023, activists and customers on the right attacked Target on social media for its LGBTQ-themed merchandise during Pride Month. Target employees faced threats over items such as bathing suits designed for transgender people, and the company removed them from stores. Misinformation spread on social media that the swimsuits were marketed to children, which they were not. The backlash led to a drop in sales and lawsuits from Republican-aligned legal groups. Last year, Target sold Pride products in fewer stores and offered the full merchandise collection online. Target is again taking a muted approach to Pride Month this year. In 'select stores,' Target is selling a 'multi-category collection including home, pets, books, vinyl and adult apparel and accessories' to celebrate Pride, the company said in an email to employees viewed by CNN. Target is selling the full Pride product selection online. 'We are absolutely dedicated to fostering inclusivity for everyone – our team members, our guests, our supply partners, and the more than 2,000 communities we're proud to serve,' a Target spokesperson said. 'As we have for many years, we will continue to mark Pride Month by offering an assortment of celebratory products, hosting internal programming to support our incredible team and sponsoring local events in neighborhoods across the country.' But Target's Pride merchandise is limited and displayed less prominently in stores than in previous years, said one Target senior leader who spoke under the condition of anonymity because they were not authorized to speak publicly. Target store employee and customer excitement for Pride Month has dissipated as a result of the company's shift, according to the senior leader. 'It feels like we have catered to the direction of the administration,' this person said. Other companies are also dialing back public pronouncements, donations and merchandise in support of Pride Month. Last year, Kohl's launched a 'Pride capsule collection' of merchandise and donated $100,000 to The Trevor Project, a suicide prevention and crisis intervention organization for LGBTQ youth. 'As we use this month to embrace love in all forms, we simultaneously create more spaces for members of the LGBTQIA+ community to live out loud,' Michelle Banks, Kohl's-then chief diversity, equity & inclusion officer, said in a news release. (Banks is now Kohl's chief inclusion and belonging officer.) Kohl's has not announced any Pride Month plans this year and did not respond to CNN's requests for comment. Macy's last year touted that it hosted a donation campaign for The Trevor Project, spotlighted LGBTQ-owned brands, and set up displays in select Macy's windows and at local Pride marches nationwide. Macy's is supporting Pride events this month in a similar way, including participating in Pride events nationwide and raising money for The Trevor Project. But unlike previous years, the company is not making official announcements about its plans. Nordstrom, Gap and several other brands that highlighted their Pride Month efforts last year appear not to have repeated them this June. The companies did not respond to CNN about their plans. But a quieter marketing approach to Pride Month does not necessarily mean companies are abandoning support for LGBTQ employees or customers. 'I do see there's pivoting happening (for Pride Month). What I don't see is corporates walking away from the LGBTQ community,' said Sarah Kate Ellis, president of advocacy group GLAAD. 'They don't want to be caught in the crosshairs of this presidency, and they don't want to become the headline like Target or Bud Light.' Many companies are instead working behind the scenes to engage their LGBTQ employees and strengthen employee recruitment and retention strategies. Just 14% of companies reported plans to reduce internal engagement during Pride Month, according to Gravity Research. Corporate employees are providing counter-pressure to keep brands active on LGBTQ issues. 'Companies are going deeper and wider, rather than supporting an event,' Ellis said. 'They're finding better ways to thread their work supporting the LGBTQ community into their organizations.'
Entrepreneur
a day ago
- Business
- Entrepreneur
When Tariffs Bite
Opinions expressed by Entrepreneur contributors are their own. You're reading Entrepreneur United Kingdom, an international franchise of Entrepreneur Media. Against the backdrop of an increasingly unstable market thanks to global geopolitical tensions, several financial records were broken when President Trump announced tariffs on goods being imported into the USA. We saw an unprecedented $6.4 trillion market-wide loss over two days, reported by the Wall Street Journal, and the Dow Jones lost more than 2,000 points in a single day for only the fourth time in history. For business leaders, this isn't just volatility; it's a clarion call to rethink resilience. They are naturally turning towards their accountants to help guide them through the instability and ensure continued liquidity. At HLB, we've long championed that turbulence isn't a barrier—it's a catalyst for reinvention. Driving innovation A key focus for businesses must be on driving innovation, which is no longer a luxury but a necessity. When faced with economic uncertainty and aggressive market shifts, companies which actively innovate are more likely to thrive. It might be easy to focus on the challenges, but there are also opportunities which present themselves in these stormy times – or which can be orchestrated through careful planning and business transformation. It may feel instinctual to keep things the same when the outside influences are so changeable, but in fact it's a prime time to rethink business structure, logistics and customer engagement strategies. With tariffs now in place across most of the world, companies importing into the USA should focus on building resilient and diverse supplier relationships in those countries where there are smaller tariffs in operation. Single-source systems should be replaced with a multi-source network as this reduces the risks of being tied solely to one region's tariffs. Sustainability should also be built into operations, as this not only works towards ESG goals (for example, by decreasing supply chain emissions) but also reduces costs and frees up capital, which can then be reinvested in other parts of the business. Agility is also crucial in times of turmoil, meaning it's vital to foster an open mindset to experimentation, implementing innovative initiatives and replacing outdated processes. By having flexible goals, and being open to how the company achieves them, adaptations can be made quickly when necessary and creative solutions can be explored when challenges like the introduction of tariffs arise. Business leaders can thrive by treating flexibility as a core competency—setting ambitious goals but staying open to how they're achieved. When tariffs hit, creative pivots matter more than ever. Digital transformation and AI The implementation of new technology, particularly AI, is something most business leaders are already considering, if not already implementing as part of a process of digital transformation. According to the HLB Survey of Business Leaders, 78% are prioritising investments in digital technologies to enhance operational efficiency and adaptability, and 62% said digital transformation was a primary strategy to mitigate risks associated with external disruptions, such as trade policy fluctuations. Business' financial experts can use AI to analyse vast amounts of data across suppliers, logistics and import/export costs to quickly identify optimal sourcing strategies; and automation tools leveraged within logistics and HR teams can save time and operational costs, enabling the business to focus on longer-term strategic planning. Other transformative tools can help businesses better understand shifting customer demands (for example, as tariff costs trickle down to consumers), and enable companies to do more with less, ultimately providing a competitive advantage and transforming how they operate, pivot and grow – even in a volatile trade landscape. Integrating people and AI for growth A dual focus on innovation and people leads to significantly stronger outcomes. Successful companies don't simply adopt new technologies but embed them within their workforce structure by prioritising employee upskilling. This may involve providing training courses on data literacy and ESG frameworks, to ensure teams comprehensively understand how evolving technologies and regulations impact business operations. Staff must also feel empowered to collaborate across functions, as this tends to generate the most high-impact ideas; by ensuring teams have ownership over projects that combine technology tools like AI with ESG-specific goals, this helps foster an innovative and adaptable mindset throughout the company – especially if successful outcomes are considered as part of individual employees' performance milestones, to highlight the importance of these projects within the wider business' long-term strategy. With the help of their accountants, companies must make changes to their supply chains and business models, implement operational efficiencies in order to finance technological innovation, and work through the external challenges which present themselves as tariffs and global turmoil continue to disrupt the business world. Those who do so effectively can absolutely weather the storm, and build their resilience to protect themselves against any future challenges which arise.
Forbes
2 days ago
- Business
- Forbes
Ways Companies Can Navigate Trump's Constantly Shifting Tariff Policies
President Donald Trump displays a signed executive order imposing tariffs on imported goods during a ... More 'Make America Wealthy Again' trade announcement event in the Rose Garden at the White House on April 2, 2025 in Washington, DC. Touting the event as 'Liberation Day', Trump announced sweeping new tariffs targeting goods imported to the U.S. on countries including China, Japan and India. (Photo by) President Donald Trump's on-again/off-again tariff policies and pronouncements have created an economic roller coaster for business executives, making it challenging for them to know how to respond, and creating concerns for what may lie ahead. Many business leaders likely breathed sighs of relief when a federal international trade court ruled Thursday that most of the tariffs were illegal—until another court reinstated the tariffs the next day, pending an appeal of the decision by the Trump administration. The ruling by the trade court 'has significantly undermined President Trump's tariff strategy, casting doubt on the legitimacy of his actions and weakening his negotiating position with trade partners. However, businesses have also suffered collateral damage. Uncertainty remains high, hindering their managers' abilities to plan effectively. In effect, the verdict has added one more piece to the puzzle and one more variable to consider in planning,' Usha Haley, the Barton Distinguished Chair in International Business at Wichita State University, explained in an email interview with me. In an earlier story, I shared recommendations on the steps business leaders could take to help mitigate the impact of Trump's first round of tariffs, which were announced on April 2. Now, in the aftermath of the dozens of times he had changed his policies, it makes sense for business leaders to consider taking a reality check concerning the effectiveness of their response to the tariffs—and what they should do differently going forward. The uncertainty has forced many companies back into crisis mode until the dust settles. 'Companies crave predictability. Right now, they're stuck in no man's land—unsure whether to pass costs on to consumers, hold inventory, renegotiate contracts, or pivot to alternative suppliers. This type of limbo makes it nearly impossible to forecast effectively. For public companies, that means revised earnings guidance. For smaller ones, it means cash flow strain and stalled investment,' David Warwick, a supply chain expert and an executive vice president at OverHaul, noted in an email message to me. 'As a luxury interior design firm sourcing furniture globally, we've felt the impact of tariff uncertainty. Flexibility is key, along with diverse vendor relationships, proactive planning, and clear communication help us maintain momentum even as conditions shift,' Fabian Rivas, CEO of Enliven Interiors, an interior architecture and design studio, observed in an email message to me. A best practice for managing a crisis is to be nimble and ready to adjust and respond to changing circumstances. 'The unpredictable back-and-forth of President Trump's tariffs has highlighted the importance of having flexible, well-prepared supply chains. Companies should look at spreading their risk by sourcing from a wider range of countries, holding extra stock where it makes sense, and having contracts in place that allow for quick changes when needed. It's also essential to make sure internal teams are kept up to date and ready to respond when new rules come into force with little notice." Jeremy Solomons, CEO of UK-based Export Management Services, told me in an email interview. Despite the latest changing and shifting tariff-related circumstances, there are some basic priorities that business leaders should keep in mind. In a dynamic and unpredictable environment such as this, 'you must devote time to maintaining relationships with your suppliers, even as you might limit or pause your purchases from them. They might be unhappy in the moment, but they will appreciate the effort and will go out of their way to find ways of working with you as circumstances evolve,' Moshe Cohen, a senior lecturer at Boston University's Questrom School of Business, advised in an email message to me. Another priority for companies could be to be preparing and updating worst-case or next-case scenarios in anticipation of a decision by the appeals court, and to be ready for the impact of that decision.'In the logistics space, we're highly sensitive to this volatility as companies struggle to navigate where tariffs will ultimately land, which directly impacts their production planning, supply chain decisions, and capital investments. This uncertainty creates a downstream effect where our clients are strategically waiting and running multiple planning scenarios rather than making firm commitments on spending and inventory orders,' Corey Dong, CEO of Enru Logistics, advised in an email message to me. And don't forget to keep customers informed about how the next turn in the tariff roller coaster ride will impact them,'Companies need to be constantly proactive and public about how they are absorbing the impacts of the tariff volatility, to mitigate or eliminate disruptions,' Judi Durand, a crisis communications specialist at Judi Durand Consulting, told me via email. Those steps include reassuring clients on a daily basis, communicating with stakeholders about the impact of changes to Trump's tariff policies, and telling customers how those changes will impact them, she said. It's not unusual for the impact of a crisis to weigh heavily on business executives, and to dampen their outlook and spirit. That's all the more reason to maintain a healthy and positive attitude, no matter what happens next. 'It's important that you remain opportunistic and lock in buying opportunities as they arise. An unstable buying environment creates short-term opportunities, as suppliers look to shed inventory, or as international agreements temporarily lower tariffs costs in various markets. Above all, you should stay positive and avoid panic-buying, balancing opportunistic deals with a long-term strategy,' Cohen at Boston University concluded. Finally, corporate executives should take advantage of the current lull to review and update their crisis management plans to ensure they reflect current realities in the marketplace. Then be prepared to adjust the plans as needed when the appeals court issues its ruling about the future of Trump's tariffs.
