The United States is experiencing a slight slowdown in GDP growth, with the economy expanding by 2.3 percent in the fourth quarter, falling below analysts' expectations. Projections for 2024 indicate a modest increase to 2.8 percent, according to the Associated Press. These numbers come just days before the new Trump administration implements its anticipated tariff policies, starting with a 25 percent tax on imports from Canada and Mexico, the US's closest neighbors and largest trading partners.
President Trump has shown signs of flexibility regarding the scope of these tariffs, particularly concerning oil imports, suggesting potential room for negotiation or adjustment. This indecision highlights the administration's strategic use of tariffs not only as economic tools but also as quick-response measures in geopolitical dynamics, as seen in the brief but firm standoff over the return of illegal immigrants to Colombia.
The impact of these tariff policies on both US-based and foreign manufacturers remains uncertain, with many businesses grappling with how these changes might affect their long-term plans and investments.
Amidst these economic shifts, several American companies have reported strong earnings this season. Meta Platforms, led by Mark Zuckerberg, saw a 49 percent increase in fourth-quarter profits to $20.8 billion and a 21 percent rise in revenue to $48.4 billion. Microsoft reported a 12 percent increase in quarterly revenue to $69.6 billion and a 10 percent rise in net income to $24.1 billion. Apple experienced a 7 percent increase in quarterly profits to $36.3 billion and a 4 percent rise in revenue to $124.3 billion, though iPhone sales saw a slight 1 percent decline. Tesla, under Elon Musk's leadership, reported a dip in fourth-quarter profits to $2.6 billion due to one-time items, while revenue increased by 2 percent to $25.7 billion, still falling short of analysts' expectations.
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Subpar US, stagnant Europe and surging China as Trump policies beckon
cgtn.com
