**How Trump’s Trade Policies, Inflation, and Markets Are Shaping the U.S. Economy in 2024**

The U.S. economy has been on a rollercoaster ride lately. Even though the stock market has hit new highs and some numbers look good, most Americans still feel uneasy about where things are headed. That’s because big changes in trade policy, rising prices, and mixed economic signals are creating a lot of uncertainty.

Let’s break down what’s going on and what it could mean for the future.

**Tariffs and Taxes: A Double-Edged Sword**

President Trump’s trade war has been a major source of tension in the economy. He believes that raising tariffs—taxes on imports—will boost American manufacturing, reduce the trade deficit, and create jobs. While there has been some progress—exports have increased and the trade deficit has shrunk—there’s a catch.

Tariffs have also made many products more expensive, driving up costs for consumers. This has added pressure on inflation, especially for goods directly affected by these new import taxes. The revenue from tariffs is higher than ever, but it still makes up only a small piece of the federal budget. Meanwhile, the national budget deficit continues to grow.

**Inflation: One-Time Spike or Ongoing Problem?**

Inflation has been all over the place. Prices started climbing quickly around June, particularly for items hit with tariffs. In November, inflation unexpectedly slowed to 2.7%, but economists aren’t sure how accurate that number is due to data issues caused by a long government shutdown.

The big question is whether this is a short-term price bump or if inflation will stick around. Treasury Secretary Scott Bessent says it’s a one-time adjustment. Federal Reserve Chair Jerome Powell agrees to some extent but warns the effects could last for several months. If prices keep climbing, it could become a long-term issue.

**Job Market Feels the Pressure**

The job market is also sending mixed signals. Unemployment rose to 4.6% last month—the highest in four years—and wage growth has slowed. Again, data collection was disrupted by the government shutdown, so these figures come with extra uncertainty.

There was one bright spot: employers added 64,000 jobs in November, mainly in health care. But this only slightly made up for losses in October when 168,000 federal workers left after taking early resignation offers from the Trump administration.

Low-wage workers are feeling it the most. After a period when employers were desperate to hire in sectors like restaurants and hotels, demand has cooled. Wage increases for these workers have slowed down significantly.

**Public Opinion Shifts on Trump’s Economic Policies**

Last year, many voters said they trusted Trump more than Biden or Harris to manage the economy. But now that trust is slipping as economic concerns grow.

The Federal Reserve is in a tough spot too. Inflation is high, but so is concern about job growth slowing down. Last week, the Fed cut interest rates again—its third cut in a row—but not everyone agreed with the move. Powell explained that they only have one main tool: interest rates. And it’s hard to fight both inflation and unemployment at the same time.

Trump has made it clear he wants lower rates and will choose a new Fed chair next year.

**Stock Market Soars—Thanks to Big Tech and AI**

Despite all the economic worry, the stock market is booming. The S&P 500 has hit record highs 37 times this year. Much of this growth comes from big tech companies riding the artificial intelligence (AI) wave.

In fact, investments in computer software and hardware made up over 90% of GDP growth in early 2024. Some investors are cautious, comparing this AI surge to the dot-com bubble of the late ’90s. But today’s tech giants are actually profitable and earning more money as their stock prices rise—unlike many of those early internet companies.

Earnings forecasts remain strong through 2026, but if any part of the AI supply chain weakens, it could hurt future growth.

**Crypto Takes a Hit After Tariff News**

Cryptocurrency had a big year—until October. Prices for Bitcoin, Ethereum, and other coins dropped sharply after Trump announced new tariffs on China.

The stock market also dipped that day but quickly bounced back and reached new highs. Crypto didn’t recover as quickly. This drop reminded investors that digital currencies are still very volatile—even as they become more mainstream.

Trump ended a regulatory crackdown on crypto and signed new laws for stablecoins (crypto tied to real-world assets like the dollar), which gave the market some structure. Still, many worry that another crypto crash could ripple into other areas of finance.

**Hollywood Struggles as Viewers Stay Home**

With so much economic uncertainty, people often turn to entertainment for comfort—but this year’s movie season didn’t deliver.

Summer ticket sales were the lowest since 1981 (excluding pandemic years), even though big-budget superhero films and sequels hit theaters. The fall wasn’t much better—despite star-studded releases, few movies became hits.

There’s hope that holiday releases like “Zootopia 2” and “Wicked: For Good” can help turn things around.

Behind the scenes, Hollywood studios are also dealing with major corporate changes. Warner Bros. Discovery partnered with Netflix and fought off a takeover attempt by Paramount. All this reshuffling may not be good news for movie lovers hoping for more original content on the big screen.

**Looking Ahead**

The U.S. economy is currently at a crossroads. Trade policy changes, inflation pressures, labor market shifts, and stock market highs are painting a complex picture. With a presidential election coming up and new leadership expected at the Federal Reserve, 2024 could bring even more changes.

Whether you’re an investor, worker, or just trying to make ends meet—you’re likely feeling the effects of these uncertain times.