The protectionist approach of US President Donald Trump is a source of concern for chief financial officers across the globe, according to a new survey conducted by CNBC.
Chief financial officers (CFOs) of the world's biggest companies were particularly concerned about the prospect of a trade war between the United States and China.
In the latest CNBC Global CFO Council survey, 23 per cent of the respondents said they are very concerned that the new US administration will provoke a trade war with China and 72 per cent said they are somewhat concerned.
Even before taking on the role of president, Trump accused China of being a currency manipulator and threatened to impose a tariff as high as 45 per cent on Chinese exports into the US
In its trade policy agenda, Trump suggested that the US is not bound by World Trade Organisation decisions, meaning it can unilaterally impose higher taxes and other restrictions on Chinese goods if they flood the US market.
If this happens, China is likely to retaliate to protect its economy and spark a war between the two.
Chinese President Xi Jinping warned in January that "no one will emerge as a winner in a trade war".
Problems in global trade have direct repercussions on global businesses. This is why uncertainty regarding the future of trade and tax policies in the US was the second most important external risk for CFOs.
The main external risk for CFOs and their companies remained consumer demand.
The majority of CFOs told CNBC that rising political populism has had a negative impact on global economic growth over the last six months. However, there has not been an impact on their company's capital expenditure plans.
The survey was conducted between March 1 and March 10.