Economy - Moving ForwardWhat's expected of the economy?
For 2025, the stock market started strong, the three major U.S. indexes soared to its all-time highs, putting confidence in retail investors.
End of Q1, we've seen a shift in the market due to tariffs and the start of a trade war. Why are the tariffs bad for the U.S. economy?
The biggest problem with tariffs is that it could drive higher prices in consumer goods through "taxes" in imported goods. It also causes disruption in supply chain, slower economic growth, retaliation from foreign countries, etc. The economic data also shows signs of a possible recession.
Not everything is lost.
Asian countries such as Japan, Korea, and Indian are taking in the lead in trade talks with Donald Trump. China has given exemptions to certain U.S. goods in order to ease the trade war, leading to a potential trade talks with the economy giants, the U.S. The 90 day reciprocal tariffs are also an opening for talks.
Let's see how it goes.
