Trump's tariff policies hinder investments in the US, slowing down the economy
The post Trump's tariff policies hinder investments in the US, slowing down the economy appeared on BitcoinEthereumNews.com. According to Commerce Department data, Foreign Direct Investment (FDI) in the US dropped to $52.8 billion in the first quarter of 2025, down from a revised $79.9 billion in Q4 2024. The decline coincided with business uncertainty surrounding President Donald Trump’s tariff policies. However, the slowdown may be short-lived, as multiple foreign firms are launching multibillion-dollar manufacturing projects nationwide. Nippon Steel’s acquisition of US Steel for nearly $15 billion is also expected to boost FDI figures in the upcoming quarters. Trump’s tariff policies hinder investments in the US, slowing down the economy The lower first-quarter Foreign Direct Investment inflows contributed to a widening of the US current account deficit to a record high of $450.2 billion as businesses front-loaded imports ahead of Trump’s steep tariffs. The Commerce Department’s Bureau of Economic Analysis also said the fourth quarter’s current account data was revised to $312.0 billion, instead of the previously reported $303.9 billion. The data on the current account measures the net movement of goods, services, and investments in and out of the country. Notably, a big and longstanding US trade deficit has in the past been partially offset by investment inflows into US financial assets and foreign direct investment. This majorly consists of plant and equipment, corporate mergers, and acquisitions. Meanwhile, the first-quarter FDI inflows were the smallest in dollar terms since the $42.4 billion in the fourth quarter of 2022, a time of high post-pandemic inflation. Other than that drop, quarterly FDI has been above $61 billion since the COVID-19 pandemic eased, reaching a high of $135 billion in the third quarter of 2021, the Commerce Department reported. Economists have cautioned that the ongoing uncertainty surrounding Trump’s tariffs might hinder companies from making investment choices and could slow economic growth. On the other hand, Trump claims that his tariffs…
The post Trump's tariff policies hinder investments in the US, slowing down the economy appeared on BitcoinEthereumNews.com.
According to Commerce Department data, Foreign Direct Investment (FDI) in the US dropped to $52.8 billion in the first quarter of 2025, down from a revised $79.9 billion in Q4 2024. The decline coincided with business uncertainty surrounding President Donald Trump’s tariff policies. However, the slowdown may be short-lived, as multiple foreign firms are launching multibillion-dollar manufacturing projects nationwide. Nippon Steel’s acquisition of US Steel for nearly $15 billion is also expected to boost FDI figures in the upcoming quarters. Trump’s tariff policies hinder investments in the US, slowing down the economy The lower first-quarter Foreign Direct Investment inflows contributed to a widening of the US current account deficit to a record high of $450.2 billion as businesses front-loaded imports ahead of Trump’s steep tariffs. The Commerce Department’s Bureau of Economic Analysis also said the fourth quarter’s current account data was revised to $312.0 billion, instead of the previously reported $303.9 billion. The data on the current account measures the net movement of goods, services, and investments in and out of the country. Notably, a big and longstanding US trade deficit has in the past been partially offset by investment inflows into US financial assets and foreign direct investment. This majorly consists of plant and equipment, corporate mergers, and acquisitions. Meanwhile, the first-quarter FDI inflows were the smallest in dollar terms since the $42.4 billion in the fourth quarter of 2022, a time of high post-pandemic inflation. Other than that drop, quarterly FDI has been above $61 billion since the COVID-19 pandemic eased, reaching a high of $135 billion in the third quarter of 2021, the Commerce Department reported. Economists have cautioned that the ongoing uncertainty surrounding Trump’s tariffs might hinder companies from making investment choices and could slow economic growth. On the other hand, Trump claims that his tariffs…
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