Welcome to today’s podcast where we’ll discuss the domestic fallout from President Trump’s tariffs, highlighted in a recent Vox article.

Since the announcement of sweeping tariffs, consumer confidence has plummeted to a near-record low, dropping to 50.9 on the University of Michigan's index. This decline is even lower than levels seen during the Great Recession, indicating widespread uncertainty. As one economist noted, “When you announce you’re doing tariffs in two weeks, that’s going to lead to a big decline in spending in two weeks, but it may lead to a really big increase in spending in the short term.”

Indeed, we’ve seen a spike in panic-buying, particularly in the auto and electronics sectors. However, this might not be sustainable and hints at deeper economic troubles.

On the manufacturing front, Trump’s promise that “jobs and factories will come roaring back” appears misguided, as recent data shows a downturn in US manufacturing. Surveys from the Federal Reserve reveal a sharp decline in business activity and new orders, leading to concern among manufacturers.

Their economic outlook is bleak, and despite fear of criticisms, many are hesitant to confront the ongoing tariff policies that threaten their operations.

As anxiety grips consumers and businesses alike, it’s clear that the impacts of these tariffs are resonating beyond the stock market, potentially leading us toward a precarious economic situation. Stay tuned for more insights on how these developments unfold.
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