Economic contraction in Q1 for the U.S. economists note, highlighting potential hazards from tariffs
Rewritten Version:
Host MICHEL MARTIN opens up on the rocky state of the economy during the Trump administration's first 100 days.
LEILA FADEL, another host, chimes in asking Americans to share their feelings after hearing the news of economic output shrinking during the initial three months of the year. Jeremy Rice, a home decor shop co-owner in Lexington, Kentucky, isn't fazed, having gone through tough periods before, like the housing crisis and COVID-19. His shop specializes in faux flowers, mainly shipped from China, making it susceptible to economic slowdowns since it's not a life-essential industry.
Moving on, Cindy Ayers Elliott, CEO of Foot Print Farms in Jackson, Mississippi, confronts increased costs from rising prices of automotive parts, food, fertilizers, and gas, affecting her farm's productivity. These rising costs trickle down to her clients and neighbors, making everyday goods more expensive for everyone.
Meanwhile, Maureen Hatfield, a retired letter carrier in Haines City, Florida, worries about housing and rising prices, expressing the increased burden on her household budget, especially the often-ridiculous price increases of common items like eggs.
So, what can we expect for the next hundred days and beyond? NPR's Scott Horsley offers insights on the economic outlook. As China tariffs started to take effect during April, marking the second quarter, financial markets have felt their impact and made consumers worried about impending price hikes. This fear is already affecting consumer spending, especially on discretionary items like meals out, as indicated by Chief Economist Greg Daco of EY-Parthenon. Given that consumer spending fuels the economy, this drop in spending could significantly impact overall growth.
The job market, though resilient so far, may face headwinds as employers cut jobs. Seth Lilavivat, a biotech company employee in San Diego, has experienced two rounds of job cuts this year and fears more to come. He's also seen a drop in his retirement savings, prompting him to be more careful with his spending and put off personal projects.
Overall, the economic outlook remains uncertain, with the risk of a recession heightened by the ongoing trade war. The slowdown in global trade and corresponding job losses might affect workers across the nation and world. Whether we plunge into a recession or not could depend on whether tariffs persist or soften, according to Daco. Even if the tariffs are lowered, he warns, we're likely to observe slow growth for the remainder of the year.
- Leila Fadel, another host, encouraged Americans to share their feelings after hearing the news about the economy's shrinking during the first three months of the year.
- Jeremy Rice, a home decor shop co-owner in Lexington, Kentucky, expressed his hopefulness despite the economic slowdown since his shop specializes in non-essential items like faux flowers that are mainly shipped from China.
- Cindy Ayers Elliott, CEO of Foot Print Farms in Jackson, Mississippi, confronted rising costs across various sectors, including automotive parts, food, fertilizers, and gas, making it harder for her and her clients to afford everyday goods.
- Maureen Hatfield, a retired letter carrier in Haines City, Florida, worried about rising housing and food prices, as common items like eggs became more expensive, creating a strain on her household budget.
- NPR's Scott Horsley suggested that the ongoing trade war could heighten the risk of a recession, potentially affecting workers across the nation and the world, as the slowdown in global trade might lead to job losses and slow growth for the remainder of the year.
