EY-Parthenon Chief Economist Greg Daco warns that ongoing tariff uncertainty will increasingly impact business investment decisions. Despite underlying strength in the US economy, companies are growing reluctant to expand as trade policy continues to evolve, creating new risks for economic stability.

The economist identifies inflation as a major unknown as tariff structures shift and face legal challenges. Section 122 tariffs could once again threaten GDP growth, adding another layer of complexity to an already volatile economic environment.

Daco's assessment, shared during Bloomberg Businessweek Daily, suggests that until tariff policy stabilizes, businesses will remain on the sidelines, potentially slowing economic expansion and creating persistent uncertainty in financial markets.