So, there’s this truck, right? It’s all set to cross the Ambassador Bridge in Windsor, Ontario, heading to Detroit, Michigan on Feb. 3, 2025. But hold up, the economy is not looking too hot at the moment. President Trump and his tariffs, even on Canada, have got people worried about a possible recession.
As Trump hits his 100th day in office this week, the U.S. economy is not exactly partying. Economic output is shrinking, the stock market is taking a nosedive, and consumer confidence is lower than a snake’s belly. It’s definitely not the “golden age” Trump was talking about when he took office a few months back.
The latest numbers from the Commerce Department show that the U.S. gross domestic product actually went down by 0.3% in the first quarter of the year. Not great news, considering it was growing at a solid 2.4% rate in the final months of 2024.
The GDP report covers the end of Biden’s time in office and the start of Trump’s term, right when he was starting his new trade war. Imports shot up as businesses and consumers scrambled to stock up before Trump’s big tariffs kicked in. And you know what? Imports are not good for GDP. Government spending was also down.
People are getting antsy out there. Personal spending, which drives the U.S. economy, slowed down in the first quarter after a strong finish to the previous year. Consumer confidence is dropping like a lead balloon, with tariffs now topping inflation as a major worry. People are afraid that Trump’s import taxes will jack up prices and send the economy into a tailspin.
The job market is still hanging in there, with an unemployment rate of 4.2% in March. But folks are feeling pretty down about the job market, the worst since 2009 when the economy was tanking.
The stock market is not helping either. The S&P 500 is down 7.3% since Inauguration Day, and the Nasdaq is down 11%. It’s the worst market performance at the start of a presidency since the ’70s.
Businesses are playing it safe with all this uncertainty. Trump slapped 10% taxes on almost everything the U.S. brings in, along with hefty tariffs on goods from China. He’s even talked about more tariffs, only to back off later, leaving everyone scratching their heads about what’s coming next.
Curt Carpenter, who runs a furniture and lighting store in Boston, is just waiting to see how things play out. He’s hoping all this tariff talk is just a bunch of hot air. The tariffs have hit his business harder than the 2008 housing crisis.
But hey, not everyone is against the tariffs. Tom Barr, a mold maker in Michigan, is actually pretty happy about them. He’s been getting more business since the tariffs kicked in, with potential customers looking to bring their orders back home.
Overall, the economy is on shaky ground, and nobody really knows what’s coming next. Maybe it’ll all work out in the end, or maybe we’re in for a bumpy ride. Only time will tell.
