Overview

• President Trump's tariffs, including a 145% levy on most Chinese imports and the removal of low-value exemptions, have significantly increased costs for US corporations, with General Motors and Harley-Davidson downgrading earnings forecasts.
• Chinese retailers Shein and Temu have raised US prices by up to 100%, and container traffic from China to the US has plummeted by 30%, exacerbating supply chain disruptions.
• Major US retailers, including Walmart and Target, warn of looming shortages and price hikes as the impact of tariffs ripples through logistics and consumer markets.
• The Trump administration's 2026 budget proposal seeks to cut non-defense spending by $163 billion, a 22% reduction, while boosting defense funding by 13%, prioritizing national security.
• Despite a stable April labor market with 177,000 jobs added, concerns grow over potential GDP contraction and inflation driven by tariff policies.