Tariffs, trade wars are still hurting the economy, per U.S. government

The fallout of tariffs and trade wars across the globe has continued to put a heavy strain on the economy, according to new data from the U.S. government.

A commercial dockyard.

For much of the nation's modern history, a key measure for economic growth and success has been evaluating the extent of the change of "core orders" relating to trade volumes. On Tuesday, the U.S. government said on a public announcement that core orders fell by 1.3% in the month of April, reflecting the largest drop in magnitude since fall of 2024. It is important to note that these core orders do not include the distribution of airplanes and automobiles, which have also been impacted negatively in recent months according to other pieces of data, namely Tesla's earnings reports in the European region showing declining sales overseas.

Polls on the Wall Street Journal predicted a steeper 7.8% decline nevertheless, such a decline is still unprecedented and a reason to worry. The past six months have evidently been the most striking period for the outcomes of Trump's "reciprocal" tariffs; these specifically include steep tariffs on the European Union, China, and all foreign steel and aluminum. Although the main goal of these tariffs has been to incentivize domestic industry by reducing foreign competition, many American businesses, particularly small businesses, have struggled to adapt to higher prices. Nevertheless, they have fought well adapting to today's dynamic economic environment; this decline has not been by no means very significant, but not irrelevant.

This data is supplemental with other data points suggesting that tariffs and trade wars waged by the Trump administration have been detrimental to the economy.