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

[placeholder]

. 27, 2025, 5:02 a.m. ET

The United States economy is starting to show signs of strain as President Trump’s abrupt moves to shrink federal spending, lay off government workers and impose tariffs on America’s largest trading partners rattle businesses and reverberate across states and cities.

Funding freezes and firings of federal workers combined with the prospect of costly trade wars are souring consumer sentiment, raising inflation expectations and stalling business investment plans, according to recent economic surveys.

Local economies are also bracing for a sudden withdrawal of fiscal support, forcing officials to contemplate tax increases or municipal bond offerings to stabilize their budgets. 

https://archive.ph/iznzK

[frank83628]

Scream, screetch, cry,  bitch & moan the daily cycle of the losing left.

None of the MSM has any credibility left, don't you get that.

[blaze master]

4 hours ago, frank83628 said:

Scream, screetch, cry,  bitch & moan the daily cycle of the losing left.

None of the MSM has any credibility left, don't you get that.

 

You've got nothing. 

[jerrymahoney]

NY Times?? You drank the Kool-Aid and what about Hunter's laptop?

 

from the NYT archive link:

 

“There’s more uncertainty than I think is widely appreciated,” said Michael Strain, an economist at the conservative American Enterprise Institute. “All the uncertainty around trade policy, uncertainty around some of the things that the Department of Government Efficiency is doing, I think will have a chilling effect on investment plans and expansion plans.”

[Cryingdick]

Nothing has changed. It's been just over a month. 

[jerrymahoney]

5 hours ago, Cryingdick said:

Nothing has changed. It's been just over a month. 

From the Michigan Consumer Sentiment Index:

 

[Hamus Yaigh]

14 hours ago, frank83628 said:

Scream, screetch, cry,  bitch & moan the daily cycle of the losing left.

Duh? Its not the left thats losing its the entire US stock market, seen it lately since Don took over?

[frank83628]

1 minute ago, Hamus Yaigh said:

Duh? Its not the left thats losing its the entire US stock market, seen it lately since Don took over?

Its of no importance to me m, so I dont follow it, it fluctuates, always has, always will,  depends what's in the news, given the the MSM are on the attack daily I can understand certain things have fallen, while other have risen

[jerrymahoney]

57 minutes ago, frank83628 said:

given the the MSM are on the attack daily I can understand certain things have fallen, while other have risen

The White House says it ‘will determine’ which news outlets cover Trump, rotating traditional ones

 

White House press secretary Karoline Leavitt said the changes would rotate traditional outlets from the group and include some streaming services. Leavitt cast the change as a modernization of the press pool, saying the move would be more inclusive and restore “access back to the American people” who elected Trump

 

https://apnews.com/article/trump-ap-news-outlets-ban-gulf-mexico-25c77f617418dd3ca2791af90b263a59

 

I guess Ms. Leavitt forgot to mention that the press overhaul was also to improve the economy.

 

[Harrisfan]

15 hours ago, placeholder said:

. 27, 2025, 5:02 a.m. ET

The United States economy is starting to show signs of strain as President Trump’s abrupt moves to shrink federal spending, lay off government workers and impose tariffs on America’s largest trading partners rattle businesses and reverberate across states and cities.

Funding freezes and firings of federal workers combined with the prospect of costly trade wars are souring consumer sentiment, raising inflation expectations and stalling business investment plans, according to recent economic surveys.

Local economies are also bracing for a sudden withdrawal of fiscal support, forcing officials to contemplate tax increases or municipal bond offerings to stabilize their budgets. 

https://archive.ph/iznzK

Spending grows gdp and debt. Reductions reduce debt and gdp growth. We knew this in 1950.

[placeholder]

3 minutes ago, Harrisfan said:

Spending grows gdp and debt. Reductions reduce debt and gdp growth. We knew this in 1950.

 

 

Except of course that Trump's tax proposals will actually increase the national debt. Yet Republicans have been claiming for the last 45 years that slashing tax revenues actually cuts debt. 

 

[Mike_Hunt]

15 hours ago, placeholder said:

. 27, 2025, 5:02 a.m. ET

The United States economy is starting to show signs of strain as President Trump’s abrupt moves to shrink federal spending, lay off government workers and impose tariffs on America’s largest trading partners rattle businesses and reverberate across states and cities.

Funding freezes and firings of federal workers combined with the prospect of costly trade wars are souring consumer sentiment, raising inflation expectations and stalling business investment plans, according to recent economic surveys.

Local economies are also bracing for a sudden withdrawal of fiscal support, forcing officials to contemplate tax increases or municipal bond offerings to stabilize their budgets. 

https://archive.ph/iznzK

Layoffs have been going for sometime.  

[Mike_Hunt]

8 hours ago, jerrymahoney said:

NY Times?? You drank the Kool-Aid and what about Hunter's laptop?

 

I heard the laptop was Russian disinformation. 

[bubblegum]

47 economics. 555

[jerrymahoney]

14 minutes ago, Mike_Hunt said:

I heard the laptop was Russian disinformation. 

Clever, those Russians.

[placeholder]

11 minutes ago, Mike_Hunt said:

Layoffs have been going for sometime.  

Unemployment has been holding steady. As for "layoffs have been going on for sometime..." Can you name a time in the history of the economy when layoffs weren't going on? The issue is have there been more layoffs than hires? And the answer is that there was a clear  trend showing a net gain during the Biden administration:

https://fred.stlouisfed.org/series/PAYEMS

[nauseus]

Such ridiculously high amounts of money creation will make the markets and economy appear to be wonderful.

 

https://fred.stlouisfed.org/series/M2SL

 

All coming to  an end now, maybe, finally?

 

 

[Hamus Yaigh]

47 minutes ago, jerrymahoney said:

Leavitt cast the change as a modernization of the press pool, saying the move would be more inclusive and restore “access back to the American people” who elected Trump

 

The White House Press Pool is meant to provide the public with access to unbiased information about the president and his actions.

By making changes that limit the pool to only certain journalists or outlets that are favorable to the president, it creates an environment of biased and censored information, which is not only unhealthy for democracy but also deprives the public of balanced and accurate reporting. It seems like this move is more about protecting the president from criticism or accountability, rather than giving access back to the people. One would need to be pretty dim not to see right through Leavitt.

[placeholder]

3 minutes ago, nauseus said:

Such ridiculously high amounts of money creation will make the markets and economy appear to be wonderful.

 

https://fred.stlouisfed.org/series/M2SL

 

All coming to  an end now, maybe, finally?

 

 

First of all, when a demand crisis looms, as was the case during the covid pandemic, not increasing the money supply most likely would have led to a depression,

Second, what don't you understand about the fact that a tax cut, amounts to the same thing as an increase in the money supply?

[Mike_Hunt]

11 minutes ago, placeholder said:

Unemployment has been holding steady. As for "layoffs have been going on for sometime..." Can you name a time in the history of the economy when layoffs weren't going on? The issue is have there been more layoffs than hires? And the answer is that there was a clear  trend showing a net gain during the Biden administration:

https://fred.stlouisfed.org/series/PAYEMS

I work in the tech sector 

 

https://www.statista.com/statistics/199999/worldwide-tech-layoffs-covid-19/

[Hamus Yaigh]

50 minutes ago, Harrisfan said:

Spending grows gdp and debt. Reductions reduce debt and gdp growth.

Reducing government spending by slashing budgets across the board without consideration for the economic impact can be damaging. It can lead to job losses, reduced consumer spending, and lower confidence in the economy, which can actually result in a decline in GDP. This can be seen in today's daily falls in US stock markets with the Nasdaq down 10% already since Trump took over in January affected by lower confidence and arbitrary tariffs talked about randomly on any day of the week that Americans will have to pay for.

[nauseus]

16 minutes ago, placeholder said:

First of all, when a demand crisis looms, as was the case during the covid pandemic, not increasing the money supply most likely would have led to a depression,

Second, what don't you understand about the fact that a tax cut, amounts to the same thing as an increase in the money supply?

 

What you don't understand is that this goes back way further than Covid.

 

Second, do tax cuts necessarily produce inflation?

[spidermike007]

Just wait, it's only starting. Trump is doing a great job of isolating the US, diminishing its influence and demolishing its economy. 

 

As far as I'm concerned one of the most dangerous, reckless, and poorly thought out policies that Trump has proposed, are even higher tariffs on many classes of imported products.

Who ends up paying for this? American companies who are manufacturing in China, and the consumer, that's who. 

In the end huge taxes may encourage companies to pull out of China, which is a good thing, but how long will that process take, and what will the economic consequences be in the interim? 

 

If he enacts his import tariffs as promised it could spell disaster for the American economy. It is nothing but a massive tax hike on the American people, and could have a very negative impact on thousands of American companies that manufacturer overseas, without any true understanding of why they manufacture overseas. Trump manufactures overseas, every opportunity he gets, to save money. Bibles, baseball caps, and likely countless other things. So, calling him very disingenuous and extremely dishonest would be an understatement. 

 

Trump is a failed capitalist. It is fairly easy to get wealthy if you are willing to steal most of your fortune from unsuspecting small contractors. Yet he still went bankrupt. Five times. Massive failures. That requires a special kind of skill. Or another form of grifting.

 

His tax hike proposals would end up being a disaster. If they were highly targeted tariffs, only imposed upon goods other states were subsidizing, making it impossible to compete, that makes sense and would be good policy. But, blanket tariffs end up being punitive for the American consumer and American companies forced to operate overseas due to the silly costs of manufacturing in the US. They are a tax.

 

Trump lies when he says other nations will pay for them. He lies when he says companies will pay for them. Consumers will pay, so it becomes a tax. Be bold, big Don and for once be honest. It is a tax hike. And it could slow down the economy and result in a massive loss of jobs, and major inflation. Very dumb policy. 

 

 

[Harrisfan]

40 minutes ago, bubblegum said:

47 economics. 555

Misinformed unemployed socialist 

[Harrisfan]

3 minutes ago, spidermike007 said:

Trump is a failed capitalist

Billionaire failed. You must be a trillionaire.

[Harrisfan]

17 minutes ago, Hamus Yaigh said:

Reducing government spending by slashing budgets across the board without consideration for the economic impact can be damaging. It can lead to job losses, reduced consumer spending, and lower confidence in the economy, which can actually result in a decline in GDP. This can be seen in today's daily falls in US stock markets with the Nasdaq down 10% already since Trump took over in January affected by lower confidence and arbitrary tariffs talked about randomly on any day of the week that Americans will have to pay for.

Nasdaq has boomed for 2 years. Needed a sell off.

[nauseus]

15 minutes ago, Mike_Hunt said:

I work in the tech sector 

 

https://www.statista.com/statistics/199999/worldwide-tech-layoffs-covid-19/

 

Yes, certain sectors have been sliding for a while and the important unemployment rate is back up to 7.5%. 

 

https://fred.stlouisfed.org/series/U6RATE

 

And because Trump is keen to cut out all of those recently created do-nothing gov jobs that's a problem? Righty ho!

[spidermike007]

10 minutes ago, Harrisfan said:

Billionaire failed. You must be a trillionaire.

As I said it's a lot easier to make money if you're willing to steal it, and if you're willing to stiff nearly everyone that you work with. 

[nauseus]

13 minutes ago, spidermike007 said:

Just wait, it's only starting. Trump is doing a great job of isolating the US, diminishing its influence and demolishing its economy. 

 

As far as I'm concerned one of the most dangerous, reckless, and poorly thought out policies that Trump has proposed, are even higher tariffs on many classes of imported products.

Who ends up paying for this? American companies who are manufacturing in China, and the consumer, that's who. 

In the end huge taxes may encourage companies to pull out of China, which is a good thing, but how long will that process take, and what will the economic consequences be in the interim? 

 

If he enacts his import tariffs as promised it could spell disaster for the American economy. It is nothing but a massive tax hike on the American people, and could have a very negative impact on thousands of American companies that manufacturer overseas, without any true understanding of why they manufacture overseas. Trump manufactures overseas, every opportunity he gets, to save money. Bibles, baseball caps, and likely countless other things. So, calling him very disingenuous and extremely dishonest would be an understatement. 

 

Trump is a failed capitalist. It is fairly easy to get wealthy if you are willing to steal most of your fortune from unsuspecting small contractors. Yet he still went bankrupt. Five times. Massive failures. That requires a special kind of skill. Or another form of grifting.

 

His tax hike proposals would end up being a disaster. If they were highly targeted tariffs, only imposed upon goods other states were subsidizing, making it impossible to compete, that makes sense and would be good policy. But, blanket tariffs end up being punitive for the American consumer and American companies forced to operate overseas due to the silly costs of manufacturing in the US. They are a tax.

 

Trump lies when he says other nations will pay for them. He lies when he says companies will pay for them. Consumers will pay, so it becomes a tax. Be bold, big Don and for once be honest. It is a tax hike. And it could slow down the economy and result in a massive loss of jobs, and major inflation. Very dumb policy. 

 

 

 

Yawn.

[jas007]

Of course the economy is going to show signs of strain from tariffs and spending cuts.  Powerful forces are fighting back any way they can and it's all just beginning.  

 

Trump knows this, the American people know this, and the real people seem to approve.  Not the fake real people the media portrays. Not the fake conserevatives planted at  rallies.  The real people. The people who elected Trump and who are row giving him one of the highest approval ratings ever for a President at this point in his administration. 

 

The media will tell anyone who will listen that Trump economic policies have been tried before and have failed before.  But have they really?  Or did they just fail in terms of the Western mindset?  

 

According to Trump, reciprocal tariffs are good for America.  Spending cuts will be more than offset by cost cutting measures, and his Trump Gold Card program can make all the difference in the world, in short order.  Attract the best and the brightest from all over the world.  People who will create real jobs. People who will pay taxes like everyone else. 

 

Anyone criticizing Trump before he even begins his quest, is simply falling victim the failed lies of the past.  Why not give the guy a chance?  He's up against powerful forces, as I've said, but  I think the real American people support him, at this point.