So, it’s been like a whole month since President Trump dropped the bomb on worldwide tariffs. Since then, all we’ve seen are countries getting all up in arms with tariff retribution and then pausing them. But now, some of those pauses are over, including a sneaky loophole that let Americans buy stuff from China on the cheap without paying tariffs. Talk about a rollercoaster ride, right?
The big question is, what’s the deal with the data so far? Well, the U.S. GDP took a hit last quarter. Unemployment is just chilling, and employers managed to add 177,000 jobs last month. Mixed signals all around, folks. So, we turned to our buddy Scott Horsley over at NPR to help us make sense of all this madness. Hey, Scott.
Scott Horsley: Hey there, Don. I’ll try my best, but man, this stuff is crazy.
Don Gonyea: So, Scott, the economy took a nosedive. Is that all because of the tariffs?
Horsley: Kinda indirectly, yeah. The reason the GDP went down last quarter is because everyone was stocking up on imports before the tariffs hit. And you know what? Imports drag down the GDP. On top of that, consumer spending took a hit, which is a big deal for economic growth. And let’s not forget the uncertainty hanging over our heads. Like, seriously, nobody knows where we’re headed these days.
Michael Pugliese from Wells Fargo chimes in, saying, “It’s been quite the roller coaster ride over the past month. The Liberation Day tariffs came and went, exemptions were made, trade talks were happening. I mean, who knows where we’ll be in 60 or 90 days, right?”
Horsley: Factory managers are singing the same tune, with one of them going on about how supply chains are all messed up because of the uncertainty. And let’s not forget the rising costs of imported materials and the drop in factory orders. It’s a mess out there.
Gonyea: I ran into some union autoworkers at a Trump rally, and they’re all about these tariffs. What’s the word on the street with American businesses?
Horsley: Most businesses aren’t on board with the tariffs, but there are a few cheerleaders out there. Take Tom Barr, for example. He runs a company making fancy molding equipment in Michigan. He’s been feeling the heat from Chinese competitors offering quality products at dirt-cheap prices. The tariffs on Chinese imports have given him a glimmer of hope, though. Potential customers are knocking on his door, but investing big bucks in a volatile market isn’t something businesses take lightly.
Gonyea: So, are we in wait-and-see mode, or are we in full-blown crisis mode?
Horsley: Your guess is as good as mine, Don. Consumers are feeling down, worried about prices going up and possible layoffs. Consumer confidence is in the dumps, but that doesn’t always translate to spending habits. If folks keep on spending, the economy might just stay afloat. But if they tighten their purse strings as much as they’re tightening their moods, we could be in for a bumpy ride.
Gonyea: Thanks for shedding some light on this mess, Scott.
Horsley: Anytime, Don. Always a pleasure chatting with you, man.
