Higher tariffs have been levied by President Trump on goods from over 60 countries and the EU, with rates starting at 10% and reaching up to 20%. The administration anticipates significant investment from the EU, Japan, and South Korea. Trump's claim of unprecedented growth stems from expectations of renewed investment and hiring. However, early economic indicators show hiring stagnation, rising inflation, and declining home values, suggesting potential negative impacts on the US economy. Analysts indicate that reduced productivity may lead to a decrease in workforce requirements.
Mr Trump also expects the EU, Japan and South Korea to invest hundreds of billions of dollars in the US. "I think the growth is going to be unprecedented," Mr Trump said on Wednesday afternoon.
Despite the uncertainty, the Trump White House is confident that the onset of his broad tariffs will provide clarity about the path of the world's largest economy.
What the data has shown is a US economy that changed in April with Mr Trump's initial rollout of tariffs, an event that led to market drama, a negotiating period and Mr Trump's ultimate decision to start his universal tariffs on Thursday.
"A less productive economy requires fewer workers," Mr Silvia said in an analysis note.
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