President Donald Trump's trade and fiscal policies have led to rapid and frequent changes in U.S. economic policy, including the imposition of a 10% universal tariff on all imports and a 145% tariff on Chinese goods—later reduced to 30% after negotiations. The administration has also threatened additional tariffs on autos and electronics, with exemptions and rollbacks announced at various times. April 2, referred to as 'Liberation Day,' marked the declaration of a global trade war, and the ongoing volatility has contributed to market instability. Small and midsize U.S. businesses report challenges in adjusting supply chains, with many unable to shift manufacturing away from China due to its expertise and integrated logistics. Companies such as Manley Labs have experienced a 19% decline in sales and have cut staff hours by 25%. The National Federation of Independent Business Small Business Optimism Index dropped by 1.6 points in April, falling below its 51-year average for a second consecutive month. Consumers are facing higher prices, with over half of U.S. companies planning price increases to offset tariffs. Walmart's CEO stated that higher tariffs will result in higher prices, and Mattel also announced price hikes. Surveys show that 50% of consumers are cutting purchases in response to tariffs, and discretionary spending has declined. Legal uncertainty persists after the Court of International Trade ruled most tariffs illegal, only for an appeals court to suspend enforcement, leaving tariffs in place for now. The Senate is currently debating the administration's budget bill, which passed the House by a single vote. The budget bill extends tax cuts mainly benefiting corporations and higher-income individuals, introduces a 3.5% tax on remittances abroad, and includes cuts to food assistance, healthcare, and foreign aid. Projected deficit increases range from $2.8 trillion to $3.8 trillion over ten years, with the potential to reach $5 trillion if temporary provisions are made permanent. The bill also increases military spending and postpones EU tariffs until July 9. Moody's has downgraded U.S. Treasury debt to AA1, citing fiscal sustainability concerns as government debt nears $40 trillion. Bond yields have climbed to 5.15%, and analysts such as Jamie Dimon warn of risks to the bond market. Elon Musk resigned from his government role at DOGE after failing to meet cost-cutting targets, estimating $175 billion in potential cuts, while Howard Lutnick now serves as Treasury Secretary. The budget bill contains a provision for punitive taxes on foreign investors from countries with tax policies Congress finds discriminatory. This, along with tariff and fiscal uncertainty, has raised concerns about reduced foreign investment and ongoing legal disputes affecting business confidence and economic growth.