Economists say uncertainty from Trump’s tariff threats and mass layoffs of government workers are starting to have a “chilling” effect on the U.S. economy.
Economists warn that President Trump's tariff threats and job cuts at the Department of Government Efficiency (DOGE) are creating economic uncertainty, which is having a chilling effect on the U.S. economy. Tariffs on Canada and Mexico, set to increase on March 4, could raise prices for consumers, particularly at grocery stores and gas stations. The uncertainty surrounding these tariffs, along with planned tariffs on cars, semiconductors, steel, and aluminum, is causing businesses to reduce production and potentially lay off workers. Additionally, the layoffs at DOGE are reducing consumer spending as people save more due to job insecurity. The tariffs on key trading partners could lead to higher costs for imported goods, potentially contributing to inflation.
