NEW YORK (Reuters) -Citigroup CEO Jane Fraser said on Monday most of the bank’s clients could absorb U.S. tariffs of 10% the nation’s trading partners, but cautioned companies are waiting on investments and hiring until there is more economic clarity.

“If it is 10%, most of the clients we talk to say, ‘yeah we can absorb that,’ if it is 25%, not so much,” Fraser said at the Milken Institute Global Conference in Los Angeles.

“Most companies are in a bit of limbo land… and in that investment spending, some of that is being suspended, some of the decisions on capex and hiring are on hold,” she said. “That will have an impact on the demand and the economy.”

(Reporting by Saeed Azhar, editing by Lananh Nguyen)