Economists contend that tariffs will lead to an increase in prices for consumers and will hinder economic growth, although most do not anticipate an imminent recession. Within the White House, there is no widespread panic regarding the economic data according to sources close to the ongoing debate. Trump's advisors feel encouraged by his electoral victory in seven key states, despite the market downturn due to tariffs imposed by Donald Trump.
Trump's team is alerting about the short-term effects of the crisis while seeking to drastically reform trade and public spending. During his campaign, Trump promised to extend tax cuts for households, reduce charges, and implement tax reforms. The approval of Trump's economic management by Americans is at 42%, with an overall approval rating of 45% since his inauguration.
The trade war has affected American companies of all sizes, raising concerns about a possible recession in the U.S. Tax cuts could alleviate this situation by putting more money in consumers' hands. However, the approval of a tax law faces obstacles due to disagreements among Republican lawmakers about the strategy to take.
Trump seeks to expedite the approval of a broad tax bill to stimulate the economy, while investors and consumers show growing anxiety. Although Trump acknowledges that his trade policy may cause disruptions, he insists it will benefit Americans in the long term.
Uncertainty about the economy, rising prices, and persistent inflation pose challenges for Trump and his administration. The signing of a tax bill in the coming months is expected to be crucial for reviving the economy and calming the markets. Despite the obstacles, Republicans aim to pass the legislation before July.
The complexity of the economic situation and the competition between the House of Representatives and the Senate for law drafting pose additional challenges. Trump is preparing to meet with executives at a Business Roundtable event, seeking to restore confidence and optimism in the market. Despite the concerns, some Republicans do not show great anxiety about the current economic situation.
