Tariff threats and uncertainty could weigh on consumers, drag down US economy, gov't report suggests

Published On Feb 28, 2025, 8:42 AM

Recent consumer spending data shows a decline, largely attributed to rising economic uncertainty fueled by potential tariff imposition by the U.S. government, particularly on imports from Canada and Mexico. These tariffs might increase prices and reduce consumer confidence, posing risks to the economy's overall health. While incomes have increased, consumers are cutting back on spending, especially for non-essential items like cars. The situation has raised concerns about inflation potentially rising due to these tariffs, which could exacerbate economic challenges.