WACO, Texas (KXXV) — A trade war is an economic conflict in which countries impose tariffs or other trade barriers on each other in response to similar actions by the other side. If only tariffs are used, the conflict is known as a customs war or tariff war. When one country raises tariffs, the other may retaliate by increasing its own.
There is ongoing concern over President Donald Trump’s tariffs and whether they could lead to a trade war due to uncertainty surrounding his trade policy.
The Conference Board reported that its consumer confidence index sank this month to 98.3 from 105.3 in January. That’s far below the expectations of economists, who projected a reading of 103, according to a survey by FactSet.
And according to the Associated Press, The most recent economic data and a pessimistic turn among American households does not bode well for the U.S. economy, experts say.
In a note to clients, Carl Weinberg, chief economist at High Frequency Economics, wrote: “Based on all the indicators showing declining consumer and business confidence and sentiment, we are expecting a slowing economy.”
The annual inflation rate in the U.S. rose to 3% in January 2025, up from 2.9% in December 2024, surpassing market forecasts of 2.9%. This suggests stalled progress in efforts to curb inflation.
Consumer spending makes up about two-thirds of U.S. economic activity and is closely monitored by economists for clues about how American consumers are feeling.
