Hardwood Floors December 2025/January 2026

By Santo Torcivia

A major uncertainty and risk facing the U.S. economy and this forecast is the impact of the wide-ranging tariffs and the federal government budget cuts and federal labor lay-off initiatives being instituted by the Trump administration. The tariffs present the greatest unknowns and the highest risks: • Tariffs could create chaos for supply chains, dislocate manufacturing and sales, and kick-up inflation. Tariffs could worsen fiscal deficits, adding pressure to long-term interest rates. • Uncertainty about tariffs and general economic conditions is causing both consumers and businesses to hold back on spending and investment until more clarity is reached. • Inflation remains a threat if tariffs, deficits, and wage increases cause prices to rise above the inflation target rate.

On the positive side: • Tariffs, although a major cause of the current uncertainty, also will increase federal revenues, and if these revenues are applied to the federal debt, they will reduce the deficit. • The tariffs are expected to open foreign markets for U.S. exports, increasing jobs, driving up domestic production and investments, as well as stimulating onshoring. • The impact of tariffs could be reduced by a strengthened U.S. dollar, making imports less expensive from nations with weakened currencies. • Real Gross Domestic Product (GDP) continues to grow, although at a slower pace. • Employment, though slowing, continues to grow while unemployment is falling slowly. • Real disposable personal income growth continues to increase and is exceeding the core inflation rate of growth. • Although total housing starts are declining, single-family home construction is increasing. • Tax cuts passed by Congress this year will increase consumer spending and business investment.

COMMERCIAL

FITNESS

The original rubber impact sound insulation and fitness flooring. QTSOUNDCONTROL.COM