https://www.cnbc.com/2025/03/24/cnbc-daily-open-tariff-flexibility-could-also-mean-uncertainty.html
The article points out how the unpredictable yet flexible tariff policies of the Trump administration are keeping businesses and investors in the dark. Although the administration is eager to safeguard local industries, the uncertain direction has caused issues for most companies to plan their strategy.This unpredictability is making companies cautious, which is leading them to hold back on investments and expansion plans. Uncertainty can slow down economic growth as companies hold back from taking risks if they are uncertain about the terms of trade in the future. The government needs to make the guidelines clearer and more consistent to create a stable economic situation that would boost investment and confidence in the business community.
2 comments:
The government inconsistency regarding the tariffs and other economic policies affecting businesses is quite concerning especially consumers, as established by the 10% decrease in the consumer confidence index published a week ago. These inconsistencies and unreliable economics conditions are sure to have harmful short-term effects on businesses as everyday consumers decrease their consumption in anticipation of harder times.
It will be very important to eliminate economic uncertainty in order to increase investment from firms because a lack of investment from firms is what causes recessions. In order to prevent firms from decreasing investment and causing the recession they are afraid of, actions need to be taken to increase their confidence in the economy. To start, a clear position from the Trump Administration on Tariff policies would do much to decrease uncertainty.
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