Despite the increasing concerns regarding the tariffs, a majority of the business owners expect the US economy grow in the second half of 2025. This is based on the latest mid-year business Outlook survey published on Tuesday by Provident Bank.
The survey surveyed by Poll Fish for the financial institution based in New Jersey.
More than 60% of the respondents stated that economic growth would be expected in the next six months. However, over 70% expressed at least moderate concern about the possible effects of tariffs on their operations.
“Although entrepreneurs expressed concerns about tariffs, our survey will show a positive growth outlook in the near future,” said Bill Fink, Executive Vice President and Chief Lending Officer from Provident Bank. “We observe companies that strategically adapt to this environment by proactively manage the inventory and planning capital expenditure.”
While over 55% of the companies surveyed have a negative impact on the wider US economy, the majority have so far only reported minimal direct effects. Over 80% stated that the effect of tariffs on their business was either “something” or “none”.
Companies seem to have divided political preferences. Almost half (45%) said the tariffs should be completely eliminated, while 35% supported them to keep them in a way, and about 20% stated that they should be proposed as currently. More than 50% stated that the tariffs economically weaken the country.
When asked about specific surgical changes in response to tariff pressure, 41.7% of the managing directors reported plans to delay the most important investments. About 33% have adapted their inventory, while 31.7% still rate possible changes. The setting plans remain largely untouched, and almost half of the respondents reported no change and almost 30%, which indicates plans to freeze the setting.
Fewer business owners turn to promoting sales to increase demand. About a third said that they did not take any measures, and another third still evaluated their options.
More than a third of the companies surveyed plan to pass on the increased tariff costs to customers, while almost 30% indicate that they absorb these costs internally.
“With close partnerships with our customers, we can understand their unique challenges and help them navigate the dynamic credit landscape of today,” added Fink. “Providence is still obliged to provide the financial resources that companies need to success.”