As the new Trump administration prepares to implement its much-debated tariff policies, the United States is witnessing a slight slowdown in economic growth. According to the Associated Press, US GDP growth slowed marginally, falling below analysts' expectations to 2.3 percent in the fourth quarter and 2.8 percent projected for 2024. These figures come just days before a 25 percent tariff on imports from key trading partners Canada and Mexico is set to take effect.
The uncertainty surrounding the tariffs is intensified by President Trump's last-minute deliberations on whether oil imports would be included. This indecision suggests potential room for negotiation or strategic adjustments. Trump's approach, marked by quickfire threats and policy shifts—as seen in the recent standoff over returning illegal immigrants to Colombia—has left both domestic and international manufacturers uncertain about long-term plans.
Despite the economic apprehensions, some American companies have reported robust earnings this season, even as the \"DeepSeek impact\" remains a significant headline. While Nvidia, Alphabet, and Amazon have yet to announce their results, several of the so-called \"Magnificent 7\" have reported notable performances.
Meta Platforms, led by Mark Zuckerberg, reported a remarkable 49 percent rise in fourth-quarter profits to $20.8 billion, with revenue up 21 percent to $48.4 billion. Microsoft also showcased strong results, with fourth-quarter revenue rising 12 percent to $69.6 billion and net income increasing by 10 percent to $24.1 billion. Apple's quarterly profits rose by 7 percent to $36.3 billion, and revenues increased by 4 percent to $124.3 billion, although the company faced a 1 percent decline in revenue from its flagship iPhone.
In contrast, Tesla, under the leadership of Elon Musk, experienced a dip in fourth-quarter profits, attributed to one-time items, totaling $2.6 billion. The company's revenue, up 2 percent, fell short of analysts' expectations at $25.7 billion.
The mixed earnings reports reflect a complex economic landscape, where corporate successes are juxtaposed against broader market uncertainties. As Trump's tariff policies begin to unfold, businesses and investors worldwide are closely monitoring the potential impacts on global trade and economic growth.
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Subpar US, stagnant Europe and surging China as Trump policies beckon
cgtn.com
