- Institutional analysis identifies U.S. GDP distortions linked to trade.
- Final sales to private buyers up only 1.2% in Q2.
- Persistent high tariffs may impact economic outlook.
On July 30, institutional analysis revealed U.S. GDP growth distortions and persistently high tariffs, urging attention towards final domestic private sales as a growth measure.
Economists anticipate sluggish economic conditions hindering U.S. growth, while trade agreements remain ineffective, maintaining one of the highest tariff rates since the 1930s.
High Tariffs Slow Growth: U.S. Final Sales Rise Only 1.2%
Institutional analysis indicates a slowdown in U.S. economic growth, attributing it partly to distortions from trade activities. Despite trade agreements, U.S. tariffs remain high, affecting major import sectors. This has shifted economists’ focus toward final sales to domestic private buyers as a growth indicator, which saw a modest increase of 1.2% in the second quarter.
The impact of high tariffs ostensibly contributes to the slowest domestic demand growth since Q4 2022. Experts suggest that these trade dynamics could hinder upcoming economic performance, with projections of weak growth in the second half of the year. Concerns over sustainability of domestic growth amidst prevailing tariff policies have sparked discussions amongst policymakers and economists.
“Persistent high tariffs have created a barrier to optimal trade flow, directly affecting investor confidence in the U.S. markets,” said Alan Turner, Market Analyst at XYZ Financial.
Cryptocurrency Market Volatility Amid U.S. Economic Pressures
Did you know? During periods of intensified U.S.–China trade tensions in 2018, similar trade distortions increased market volatility, often affecting cryptocurrencies as hedges amidst financial uncertainty.
Bitcoin (BTC), currently priced at $117,582.60 with a market cap of $2.34 trillion, shows a market dominance of 60.91%, according to CoinMarketCap data. Its 24-hour trading volume decreased by 7.03%. Despite a 1.11% daily drop, BTC’s price remains up 21.74% over 90 days with a circulating supply of 19,899,396 as of July 30, 2025.
The Coincu research team highlights the potential for these economic challenges to catalyze changes in regulatory approaches and market adaptations. The confluence of final sales figures and tariff pressures might influence regulatory strategies, directing attention to sustainable economic frameworks amidst ongoing trade concerns.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Source: https://coincu.com/analysis/us-gdp-growth-analysis-and-tariffs/