Thu, 03 Jul 2025

Thu, 03 Jul 2025 What have tariffs really done to the US economy?

As President Trump weighs tariff plans, he will have one eye on the US economy.

* US stock market suffered a significant drop in February and April, but rebounded after Trump rolled back his plans
* S&P 500 index dropped by 12% over the course of a week in April, but is now up about 6% for the year
* Shares of tariff-vulnerable firms such as retailers and car companies are still hurting
* US goods imports in the first five months of the year were up 17% compared with the same period last year
* Economists expect customers to pay for tariffs eventually, but inflation data shows a relatively small impact so far
* Retail sales dropped by 0.9% from April to May, and overall consumer spending grew at the slowest rate since 2020 in the first three months of the year
* Unemployment remains low at 4.2%, but job creation has slowed down
* Economists warn that the economy is unlikely to escape unscathed, with a possible "softening" or "bigger slide" ahead
* US plans to charge 20% tariffs on Vietnamese goods, less than half the rate set to go into effect next week.
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