US President Donald Trump’s tariffs, launched in April, have initially sparked panic over a potential economic downturn. However, the situation has since improved, with business and consumer confidence slowly rising. While initial concerns about inflation were valid, they appear to be mitigated. The S&P 500 index of stocks has reached a record high.
The shift in sentiment comes as companies now view trade disputes as opportunities for negotiations rather than end goals. This change suggests that Trump’s “Liberation Day” tariffs may have had less impact on the economy than initially thought. Despite this, experts warn of ongoing risks and uncertainties tied to global trade dynamics.
Source: https://www.economist.com/leaders/2025/07/03/trumponomics-20-will-erode-the-foundations-of-americas-prosperity