Economic Growth Slows
Economic Growth SlowsGlobal economies are feeling the pinch from new tariffs in 2025. U.S. policies under President Trump have raised import costs. This has slowed GDP growth to -0.3% in Q1, per the Commerce Department. Economists warn of inflation spikes. Consumers face higher prices for goods like electronics and clothing. Small businesses in places like Ontario report low confidence, with only 32.7% optimistic about the economy.
Tech Holds Strong
Big Tech continues to defy economic gloom. Companies like Amazon and Microsoft report strong earnings. Bloomberg notes a 21.6% profit rise for the “Magnificent Seven” tech giants. Investors see tech as a safe bet. However, firms like Tesla face challenges. They’ve dropped revenue growth forecasts due to tariff-related costs. This shows not all tech is immune to trade wars.
Consumer Spending Shifts
Shoppers are tightening budgets. Credit card debt hit $1.21 trillion in 2024, and rising costs aren’t helping. People are prioritizing essentials over luxury goods. Retailers adapt with AI-driven inventory systems to cut waste. Despite economic hurdles, some regions show resilience. The UK saw unexpected growth in early 2025, driven by services. Still, tariff pressures loom large for the rest of the year.