Take Five: Prepare for tariffs, address dropping sentiment, and double-down or quit.

1. The U.S. and China are sparring over tariffs. On Wednesday, President Trump paused "reciprocal" tariffs on most countries for 90 days but imposed 145% tariffs on China. In response, China increased tariffs to 125%. The increased tariffs could lead to higher prices for American consumers, particularly on products like consumer electronics, clothing, toys, and some food items that are predominantly imported from China. Despite the pause on other countries' tariffs, the stock market initially surged but remains volatile, and analysts are warning of continued uncertainty.

Takeaways:

• Check to see how your company's supply chains are exposed to Chinese imports. China produces more than the United States, Germany, Japan, South Korea, and Britain combined, including 73% of smartphones, 78% of laptops, and 87% of video game consolea.

• Prepare contingency plans for potential price adjustments. Higher tariffs could result in higher prices for shoppers, particularly on consumer electronics, discounted clothing, toys, and some food items.

• Some consumers are accelerating major purchases like home appliances, cars, or electronics in anticipation of price increases. Consider how this might affect your sales cycles and inventory management.

2. Consumers aren’t feeling very confident right now. Consumer sentiment skidded to an almost three-year low, as inflation expectations spiked to levels not seen since 1981. The University of Michigan's survey showed overall confidence dropping 11% to 50.8 in mid-April, the second-lowest reading on records stretching back to 1952. According to the survey's director, the deteriorating view pervaded all demographics and included the highest employment anxiety since the Great Recession.

Takeaway: The collapse in confidents and warnings of higher inflation signal potential dramatic shifts in consumer spending patterns. Managers should prepare contingency plans for decreased revenue, implement cost-control measures without sacrificing quality, and consider pricing adjustments that demonstrate value rather than just passing costs to consumers.  Also, now’s a good time to enhance internal communication to address employee anxiety about job security.

3. When it comes to DEI, companies are doubling down or bowing out. Major corporations have rapidly shifted their DEI strategies in response to Trump's executive orders and litigation concerns. Companies like McDonald's, Amazon, and Meta have abandoned explicit diversity programs in favor of more neutral "inclusion" language. Target's withdrawal sparked consumer boycotts with potential long-term financial consequences. Despite this trend, some corporations like Apple, Disney, and Costco have maintained their stance, actively opposing anti-DEI shareholder proposals and supporting LGBTQ+ initiatives even as regulatory pressure intensifies. Read More >

Takeaway: Choose a side. Now is the time to re-engage your key stakeholders around equity and inclusion, and ensure your programs are legally advised. If you’re more timid about moving forward in this space, drop it completely. This work will take careful time and attention, and if your organization doesn’t have the capacity, be transparent and ensure your staff and clients know why you’re stepping away. This is clearly not what I’d advise any of our clients to do, but it’s not the time to stay indifferent.

4. Most Americans feel personally impacted by Trump’s agenda. Three-fifths of working Americans believe federal policy changes will directly impact them within the next year, a concern that spans across industries, roles, and company sizes. Nearly half (45%) of workers expect their HR teams to help them understand these policy implications, while most feel overwhelmed (62%) or lack knowledge about recent changes (46% at small businesses, 38% at larger businesses). Read More >

Takeaway: Effective policy navigation now represents a significant competitive advantage in employee retention. Organizations that excel in simplifying regulatory complexity for their workforce will see enhanced engagement and loyalty during politically uncertain times. Here’s our recommendations:

• Strengthen HR capabilities to translate complex federal changes

• Implement targeted education programs

• Create strategic information filtering systems

• Establish cross-functional response protocols connecting finance, legal and communications teams

5. Colleges are facing the freeze. ​​The White House is freezing more than $1B in federal funding for Cornell University and almost $800M for Northwestern University. The cuts are part of an effort by the Trump administration to pressure colleges and universities into alignment with the administration's policy priorities. This represents a significant escalation in how federal funding is being used to influence higher education institutions. Read More >

Takeaway: Organizations dependent on government funding must recognize the growing political risks to their financial stability. Here’s where to start:

• Immediately evaluate your company's exposure to federal funding shifts

• Develop comprehensive contingency plans for abrupt revenue disruptions

• Diversify funding sources as a protective measure

• Prepare board members and stakeholders for potential political crosswinds

The ability to rapidly reallocate resources and adjust strategic priorities may become an essential leadership competency as federal funding becomes weaponized against organizations and institutions.

You did it! You completed the work week recap.

Take a couple deep breaths.