Even though it’s been less than two weeks into the new presidency, the U.S. markets are already beginning to see its impact on international trade. A few days ago, it was reported that retail stocks were taking a hit due to lower than expected gross domestic product (GDP) numbers. Until President Trump reaches an amicable agreement with trade partners like Mexico, it’s possible the U.S. will likely continue to see low GDP numbers impacting the retail industry.
Given the fact that 2016 saw a mere 1.6 percent growth over the 2.6 percent growth in 2015, MarketWatch claims this is the weakest performance it’s seen in years.
Retailers may need to take precautionary measures for the foreseeable future in order to safeguard themselves against today’s trade wars. This may include anything from selecting other vendors to laying off a few staff members or changing store hour operations.
Here are the numbers:
3.5 percent | Growth rate in Q3 of 2016
1.9 percent | Growth rate in Q4 of 2016
2.2 percent | Expected growth rate in Q4 of 2016
2 percent | Expected growth rate in 2017