Impact of US Inflation and Tariff Policies on the Economy: Experts Advise Increasing Savings, Nissan Predicts Record High Net Loss for 2024
The IMF report indicates that the U.S. economic growth forecast for 2025 has been lowered to 1.8%, with inflation expected to increase to 3%. Tariff revenue might reduce the fiscal deficit in the short term, but its dampening effect on imports and consumption is causing concern. Experts suggest that people should increase their emergency savings to cover 9 to 12 months. Nissan forecasts a net loss of 750 billion yen for the 2024 fiscal year, attributed to asset impairment, restructuring expenses, and the effects of U.S. tariff policies on North American market sales.
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04/24 18:01
Impact of US Inflation and Tariff Policies on the Economy: Experts Advise Increasing Savings, Nissan Predicts Record High Net Loss for 2024
The IMF report indicates that the U.S. economic growth forecast for 2025 has been lowered to 1.8%, with inflation expected to increase to 3%. Tariff revenue might reduce the fiscal deficit in the short term, but its dampening effect on imports and consumption is causing concern. Experts suggest that people should increase their emergency savings to cover 9 to 12 months. Nissan forecasts a net loss of 750 billion yen for the 2024 fiscal year, attributed to asset impairment, restructuring expenses, and the effects of U.S. tariff policies on North American market sales.
Tariffs and Inflation: A Dual Challenge for the U.S. Economy
According to the latest report from the International Monetary Fund (IMF), the U.S. economic growth forecast for 2025 has been revised down to 1.8%, a reduction of 0.9 percentage points from the initial forecast, with 0.4 percentage points attributed to a new round of tariff measures. The IMF also raised the U.S. inflation forecast from 2% to 3%, noting that the price-raising effects of tariff policies have started to show.
Nevertheless, the IMF also pointed out that the increase in tariff revenue might help reduce the fiscal deficit in the short term. The U.S. federal deficit for 2025 is projected to decrease to 6.5% of GDP, lower than 7.3% in 2024. This improvement is mainly due to additional revenue from new tariff policies implemented in early April. Data from the U.S. Treasury shows that tariff revenue in April 2025 surged over 60%, reaching $15 billion, setting a new record for a single month.
However, the IMF also warned that the stability of tariff revenue is highly uncertain, as its effects depend on consumer reactions to rising prices and changes in import demand. The Federal Reserve (Fed) also noted in its latest "Beige Book" that some regions have already experienced price increases and a slowdown in economic activity, with businesses generally taking a conservative stance on future investments and planning layoffs.
Expert Advice: Prioritize Savings and Adjust Investment Strategies
In the face of inflation and economic uncertainty, financial experts advise the public to bolster their financial defenses. Financial author Ramit Sethi suggests that the previously recommended emergency fund of 3 to 6 months is no longer sufficient to cope with current risks and should be increased to 9 to 12 months. Financial planner Matthew Saneholtz also states that those in industries with layoff risks should prepare in advance.
Experts recommend the following quick savings strategies:
- Reducing non-essential expenses, such as dining out, travel, and shopping;
- Pausing large expenditures, such as buying a car or renovations;
- Only paying the minimum on low-interest debt and redirecting funds into savings;
- Lowering investment ratios, especially for those not yet prepared with a year's worth of living expenses.
Additionally, experts recommend using high-interest savings accounts, automated savings mechanisms, and setting small goals to build up funds gradually. According to a 2025 survey by U.S. News & World Report, about 42% of Americans do not have an emergency fund, and 40% cannot handle an unexpected $1,000 expense, indicating widespread financial vulnerability.
Nissan Forecasts Record Net Loss for 2024
Amid global economic turmoil and changes in trade policies, companies also face severe challenges. Japanese automaker Nissan announced on April 24 that it expects a net loss of 700 billion to 750 billion yen (approximately $4.91 billion to $5.3 billion) for the fiscal year ending March 2025, marking a new company record, surpassing the 684.3 billion yen loss in 1999.
Nissan initially forecasted a full-year net loss of 80 billion yen in February 2024, but due to significant increases in asset impairment and restructuring costs, the loss estimate has sharply expanded. According to the company, asset impairment losses alone exceed 500 billion yen, mainly from asset revaluation at plants in North America and Japan; layoff and restructuring costs exceed 60 billion yen.
Furthermore, Nissan's global vehicle sales for 2024 are 3.55 million units, a 3% decrease from the previous year and 50,000 units below the original target. Operating profit is projected at 85 billion yen, an 85% drop from the previous year, with revenue slightly declining to 12.6 trillion yen.
Nissan pointed out that weak sales in the North American market are one of the main reasons, and the U.S. Trump administration's tariffs on imported cars have also put pressure on its performance. Although Nissan plans to shift production of some models originally destined for the U.S. from its Kyushu plant in Japan to local production in the U.S., the company admits that this adjustment has limited effects on improving performance.
