Tariff Troubles: U.S. Economy Faces Uncertain Future

U.S. single-family homebuilding and factory output rose in February, but rising material costs due to tariffs cloud the economic outlook. President Trump's trade policies and immigration crackdown contribute to uncertainty, impacting housing and manufacturing sectors. Inflation concerns persist, with the Federal Reserve monitoring the situation closely.

In February, U.S. single-family homebuilding and manufacturing output both experienced notable growth, spurred by milder winter weather.

However, economic uncertainty is growing, fueled by rising raw material prices, largely attributed to tariffs imposed by the Trump administration. These trade policies, alongside an immigration crackdown, are souring business and consumer sentiment in the housing and manufacturing sectors.

With inflationary pressures and cautious monitoring from the Federal Reserve, the U.S. economy's trajectory remains in question. Analysts warn that without policy shifts, recession risks could escalate dramatically.

(With inputs from agencies.)