Hey everyone! A new report by Apollo Global Management is raising eyebrows as it warns that sweeping US tariffs, especially on goods from the Chinese mainland, are triggering a sharp economic slowdown. Businesses across transportation, food service, and consumer goods are feeling the pinch as prices surge and consumer confidence takes a hit. 😰
Executives from major companies like Southwest Airlines, Chipotle, and PepsiCo are reporting a cautious business environment, with firms slashing investment plans and lowering earnings forecasts—the steepest cuts since 2020. Warehouses are now bursting with unsold products while container shipments and logistics indicators drop, hinting at a tough road ahead.
Adding to the strain, consumer confidence has hit record lows and households are tightening their belts. Even big-ticket purchases, such as travel and dining out, are on pause. The report also points to a risk of stagflation—a mix of slow growth and rising prices—that could limit policy tools like lowering interest rates without worsening inflation. With international tourism to the US dipping, cities like Las Vegas are already feeling the impact. Stay tuned as we watch how these trends might ripple across global markets!
Reference(s):
cgtn.com
