US Economy Growth Continues Despite Trump-Era Tariffs
Context
Despite tariffs and trade restrictions, the U.S. economy grew at its fastest pace in two years in the July–September quarter.
Why did U.S. GDP grow?
1. People spent more
• Consumer spending rose strongly (biggest factor).
• Spending on services like healthcare increased.
2. Imports fell, exports rose
• Tariffs reduced imports.
• Exports rebounded.
• Falling imports boosted GDP mathematically.
3. Higher government spending
• Defence spending increased, adding to growth.
4. Tariff impact delayed
• Full negative effects of tariffs have not yet hit prices and demand.
5. Policy support
• Tax cuts and expected interest-rate cuts supported demand.





