U.S. Capital Goods Orders Plunge Amid Tariff Turmoil

New U.S. capital goods orders have plunged significantly, indicating weakened business spending on equipment in response to tariff-related economic uncertainty. This decrease, paired with fluctuating orders and consumer confidence, suggests a turbulent economic outlook amid President Trump's shifting tariff policies and ongoing trade disputes with China and the European Union.

In a startling economic report, new orders for U.S. capital goods dropped sharply in April, marking the most significant decline in six months. Mounting economic uncertainty due to tariffs is casting a shadow over business spending, as companies hesitate on equipment investments.

The plunge in capital goods orders reflects President Trump's erratic stance on import duties, which is creating planning difficulties for businesses. Companies have been front-loading imports to avoid higher prices from tariffs, leading to volatility in spending patterns.

Further complicating the economic landscape, a tentative trade truce with China appears to have buoyed consumer confidence, yet concerns linger over potential tariff impacts. Economic forecasts suggest a slowdown in investment growth as import-driven boosts fade, indicating continued uncertainty for the U.S. economy.

(With inputs from agencies.)