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Nytimes

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U.S. Economy Shows Signs of Strain From Trump’s Tariffs and Spending Cuts

  • The U.S. economy is showing signs of strain as President Trump's actions to shrink federal spending and impose tariffs impact businesses and consumer sentiment.
  • Funding freezes, firings of federal workers, and the prospect of costly trade wars are raising inflation expectations and stalling business investment plans.
  • Local economies are bracing for a sudden withdrawal of fiscal support, leading to tax increases or municipal bond offerings to stabilize budgets.
  • Economists warn that the blunt approach of Trump's policies could bring more uncertainty and have a chilling effect on investment and expansion plans.

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