100 days in: What’s next for business

The fast-paced months of the second Trump administration have executives across industries making short-term strategic shifts, according to our May 2025 Pulse Survey.

Nearly half (48%) of business executives rank US economic policy among the top three factors driving strategic change over the next one to two years. Yet the picture varies by industry. As macroeconomic and regulatory shifts are reshaping the business environment, executives see different pressures shaped by their industry’s unique policy exposure. For example, consumer markets executives cite US trade policy more than any other factor, whereas technology, media and telecom leaders cite AI and data regulations.

In the first 100 days of the Trump administration, consumer markets (CM) companies are closely watching tariff policy shifts, with 81% citing them as a moderate or serious risk (versus 73% overall), according to our May 2025 Pulse Survey. The concern is valid. Many CM companies operate on thin margins and rely heavily on imports from tariff-targeted countries like China, making it difficult to absorb rising costs. If tariffs persist or escalate, this pressure could become the new standard — especially in exposed segments like footwear and apparel.

In response, companies are taking both immediate and longer-term steps to mitigate margin erosion. Sixty percent say they’re stockpiling key materials — a move that helps offset near-term costs but strains warehousing and logistics. We also see many CM companies renegotiate supplier terms, raise prices on less sensitive items and promote private label options. Longer-term strategies employed include diversifying sourcing, streamlining operations, nearshoring and investing in supply chain visibility. Some are going even further — rethinking talent models, embedding AI to improve efficiency and doubling down on brand differentiation to turn disruption into advantage.

At the same time, consumer behavior is shifting. April’s modest pullback in apparel prices signals more deliberate, value-focused spending. Across generations, consumers are trading down in select categories while still responding to perceived value, especially via targeted digital promotions. These patterns reinforce that success now hinges on balancing short-term pressure with long-term reinvention in a more discerning marketplace.

CM leaders should address immediate exposure while defining where they want to be next. Those who think bigger, move faster and execute with purpose will be the ones that not only endure — but lead.

Energy, utilities and resources (EUR) executives are preparing for volatility on multiple fronts, with 81% calling the uncertain macroeconomic environment a moderate or serious risk to their business, according to our May 2025 Pulse Survey. They also cite cyber attacks and margin pressure affecting earnings as risks (83% and 80%, respectively).

Climate and energy are high on their minds. EUR leaders are the most likely to cite climate policy as a top-3 driver causing them to shift short-term strategy (44%, compared to 31% for all respondents). And 72% of EUR executives say that securing reliable and cost-effective energy is a moderate or serious risk — also higher than all respondents (65%). As the transition to a low-carbon economy continues, energy leaders will continue to face challenges balancing decarbonization goals with the need to maintain affordability and reliability.

Global supply chain and trade realignments are already reshaping operations. EUR companies are leading the shift away from China, with 39% saying they’ve moved some activities to the US — higher than all respondents at 26%. One out of five also say they have shifted operations to other lower-tariff countries. These moves reflect both geopolitical tensions and a strategic push to localize critical infrastructure, including clean energy technologies.

On the AI front, while only 9% view legal and reputational issues as a serious risk, a notable 55% consider them a moderate risk, signaling that EUR companies are proceeding with caution as they adopt emerging technologies in highly regulated environments.

Despite the uncertainty, and perhaps driven by a sense of opportunity, 61% of EUR companies have already taken initial steps or moved beyond them in pursuing new M&A. An additional 23% are currently engaged in scenario planning.

The Trump administration’s fast-paced changes are being felt across banking, insurance and asset and wealth management. While tariffs don’t have the same impact on financial services (FS) as businesses like manufacturing, shifting economic policy can roil financial markets, reduce borrowing and affect the replacement value associated with insurance claims. 

Nearly half (49%) of the FS executives in our May 2025 Pulse Survey rank American economic policy among their top three reasons to reexamine their corporate strategy for the next one to two years. More than three-quarters (77%) cite margin pressure affecting earnings as a moderate or serious risk, likely due to economic uncertainty and the changing tariffs landscape. In response to current market dynamics, most FS firms are reducing costs excluding layoffs (64%) and adjusting financial forecasts and budgets (64%). 

FS execs also say they’re adjusting their short-term strategy because of AI and data regulations (49%). We expect that potential efficiency gains from AI, coupled with the opportunity for long-term improvements in customer acquisition and attrition, are accelerating AI adoption and causing a fundamental operational shift. Moreover, companies across FS are tapping into industry convergence as part of their growth strategy. For example, commercial and industrial (C&I) lending has been flat for roughly two years. But our examination of first quarter 2025 earnings reports indicates that many banks are changing their C&I mix by expanding into the fund finance business, which lends money to private equity and private credit funds. 

Without that booming part of the lending market, C&I might have been weaker at the start of 2025. Banks jumping on the fund finance opportunity strengthens our view that FS firms are gearing up for a competitive landscape that’s going to center on private markets, AI and a reduced regulatory burden.

US economic policy is weighing on health industries (HI) executives. Six out of 10 (61%) cite it among the top three reasons to rethink their short-term strategies, according to our May 2025 Pulse Survey, compared to 48% of all respondents. In response to persistent policy and market volatility, these HI leaders are making a range of operational adjustments. They’re revising financial forecasts and budgets, implementing cost reductions, assessing tariff impacts, renegotiating supplier prices and, in some cases, reshoring manufacturing operations. Providers are bracing for rising care delivery costs while pharma and medtech executives are evaluating supply chain shifts. At the same time, drug pricing remains a central concern for pharma and payers. 

Cyber attacks top the list for HI executives, with 90% flagging it as a moderate or serious risk — the highest among all industries — reflecting the ongoing fallout from major cyber incidents that have disrupted healthcare systems. Macroeconomic uncertainty is another top-tier risk, alongside margin pressure, regulatory complexity and access to skilled labor.  

Workforce challenges span the entire industry, and most HI executives (80%) identify access to skilled labor as a moderate or serious risk. Providers face shortages as they care for an aging population with increasingly complex needs. Pharma requires specialized expertise in biomanufacturing, cell therapies and regulatory compliance. While technology can improve the productivity of existing staff, mitigating some of the labor crunch, it comes with its own set of commitments like investing in change management and training. The AI wave is also driving increased demand for talent proficient in AI, machine learning and data analytics.

To steer business through all this uncertainty, HI leaders have to stay nimble. This means focusing on customers, making processes more efficient, significantly lowering cost structures and doubling down on the fundamentals of quality, compliance and cyber protection. For pharma, China-related diligence, including IP protection, data integrity and cross-border compliance, will be essential. At the same time, HI organizations need robust scenario planning and regular leadership dialogue on options and contingencies. Value pools are shifting, care delivery models are changing and technology is advancing, and strategic agendas need to adapt.

Industrial products (IP) executives are moving quickly to manage uncertainty tied to trade and regulatory policy. More than six out of 10 (62%) IP respondents to our May 2025 Pulse Survey indicate initial steps are underway or that they’ve gone beyond them to diversify their supplier base. This early momentum signals both a proactive stance on supply chain resilience and a readiness for prolonged policy volatility.

Nearly three quarters (71%) cite tariff policies as a moderate or serious risk, and IP leaders are responding to the ripple effects. Fifty-eight percent are assessing tariff impacts (compared to 54% for all industries), and they lead in renegotiating supplier pricing (43% versus 37% all respondents) and pursuing temporary adjustments like exemptions or policy reversals (42% versus 35% all respondents). While many IP companies have already taken steps to mitigate exposure, the implication is broader. Trade shifts are influencing supply chains and the business models they underpin.

Three out of four (75%) IP executives cite the complex regulatory environment as a moderate or serious risk to their company. Viewed alongside tariff-related concerns, the findings suggest that IP leaders are focused on near-term risk management while facing deeper questions about how operating models may need to adapt. For IP companies, the next frontier isn’t just managing disruption but using it as a catalyst to reevaluate where and how they operate.

As trade dynamics evolve and global risks intensify, technology, media and telecom (TMT) executives are reshaping strategy and rethinking supply chains. According to our May 2025 Pulse Survey, 60% of TMT leaders believe today’s macroeconomic and geopolitical volatility will persist beyond the next year –– but their outlook is more optimistic than other key industries. In fact, 36% anticipate opportunities to outweigh challenges in the business environment 12 months from now. Many are taking bold steps to position themselves ahead of potential disruption.

Despite near-term pressures, 79% expect long-term business benefits from protectionist trade policies. This is top of mind given ongoing tariffs on Chinese tech imports. With rules changing rapidly and varying by product type and country, agility isn’t optional — trade planning is now a make-or-break factor in cost control and resilience. In response, some sector leaders are increasing US sourcing (40%) and even realigning some of their operations — 29% are relocating from China to the US, and 21% are moving operations to lower-tariff countries. Many are turning to automation and robotics to offset higher domestic production costs and boost supply chain resilience.

While optimistic, TMT executives remain pragmatic. They’re less likely than other sectors to change tax and capital structures or pursue M&A, adjusting financial forecasts instead. They cite cyber attacks, geopolitical uncertainty and the legal and reputational risks associated with AI as serious risks to their companies. As attackers use AI to scale threats, these companies are leveraging the same tools to strengthen threat detection and response.

Looking ahead, AI and data regulation is driving near-term strategy shifts, with 26% citing it as their top reason for the next one to two years. Sector leaders are also embracing a more US-focused, cross-functional strategy — integrating insights from finance, engineering, supply chain and policy to build long-term resilience.

Between May 1 and May 8, 2025, PwC surveyed 678 US executives, including CFOs and finance leaders (12%), tax leaders (10%), risk management leaders, including CROs, CAEs and CISOs (12%), CIOs, CTOs and technology leaders (13%), CHROs and human capital leaders (12%), COOs and operations leaders (12%), corporate board directors (9%), CMOs and marketing leaders (12%) and CEOs (7%). Respondents were from public and private companies in six industries: industrial products (29%), consumer markets (15%), financial services (20%), technology, media and telecom (15%), health industries (6%), energy and utilities (9%), and other (6%). The Pulse Survey is conducted on a periodic basis to track the changing sentiment and priorities of business executives.