New research from Apollo Global Management reveals that recent U.S. tariffs are stirring up economic pain across the board. Prices are soaring and consumer confidence is taking a hit, leaving both businesses and households feeling the pressure. ⚠️
Apollo’s chief economist Torsten Slok notes that executives in transportation, food service, and consumer goods are reporting recessionary conditions as companies lower forecasts and cut investments. The tariffs, aimed at protecting American industries, are passing on higher costs to consumers.
Notably, many businesses rushed to import goods before the new tariffs took effect—especially for products from the Chinese mainland. Now, warehouses are overstocked and shipping activity has slowed down, with key indicators like the Logistics Managers' Index and truck sales signaling trouble ahead.
Consumer confidence is plummeting to record lows, with many households expecting tougher business conditions and rising unemployment. Even the tourism industry is feeling the strain as international visitors, particularly from Europe, are reducing their visits, impacting hotspots like Las Vegas.
This mix of slow growth and rising prices points to a stagflation scenario, where policy options become limited. As the U.S. braces for what could be a prolonged period of economic strain, the call for caution is louder than ever.
Reference(s):
cgtn.com
