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Former NEC Director Gary Cohn on how companies are dealing with tariffs
CNBC Televisionยท 2025-09-12 16:45
Cost Management & Efficiency - Corporations face rising input costs and limited ability to raise prices for end consumers, especially with tariffs [1][4] - Companies are forced to find solutions to maintain profitability when input costs increase and pricing power is limited [1] - Companies are increasing efficiency and reducing reliance on human capital to offset rising costs [3] - Companies' obligation is to shareholders to create a return on capital and pay back debt, necessitating efficiency improvements [4] Impact of Tariffs - Tariffs have accelerated the trend of companies seeking greater efficiency [3] - Tariffs are forcing companies to figure out how to deal with the equation or conundrum [1] Labor Market Implications - Companies are cutting down on the number of employees needed to run their businesses [3] - This trend may be counterproductive to efforts to rebuild the center of the country [3] Data Analysis & Unexpected Trends - Data reveals trends not initially anticipated, causing head-scratching [2] - Companies are struggling with the cost of goods and sales costs [2]