U.S. Services Sector Faces Economic Turbulence: Tariffs Unleash Global Market Shocks

The U.S. services sector slowed in March, signaling potential economic stagnation due to new tariffs. President Trump's 10% tariff on imported goods has heightened inflation fears, with possible job losses and a recession looming. Affected industries include construction and information services, while consumer and business sentiments decline.

The U.S. services sector experienced a slowdown in March, hitting a nine-month low, as President Trump's introduction of a 10% tariff on imported goods sparked instability in the global financial markets.

With economists warning of increased inflation and possible job losses, the sector's struggle reflects broader economic concerns, including potential recession. The Institute for Supply Management's latest report shows significant cost increases due to tariffs, with many industries, such as construction and information services, feeling the impact.

Meanwhile, business sentiment remains gloomy, driven by import duty effects and dwindling consumer confidence. Gross domestic product estimates are teetering near a 0.5% annualized growth, exacerbated by the ongoing international trade disputes and domestic policy shifts.

(With inputs from agencies.)