Overview

• The US economy shrank by 0.3% annualized in Q1 2025, marking the first contraction in two years, with experts warning of worsening impacts by mid-year.
• General Motors reduced its profit guidance by $4–5 billion due to tariff costs, while Harley-Davidson withdrew its 2025 financial outlook citing global trade uncertainty.
• Apple reported $900 million in expected quarterly tariff costs and announced plans to shift most iPhone production for the US market to India and other products to Vietnam.
• The EU has proposed a €50 billion increase in imports of US goods, including LNG and agricultural products, to address trade imbalances and avert further tariffs.
• Economists and analysts highlight growing corporate strain and policy uncertainty as key risks to both US businesses and global supply chains.