Insights brought to you by our member Hannane Chouf, Business Development Manager, David French & Associates
The U.S. economy is showing clear signs of slowing. The latest Federal Open Market Committee (FOMC) notes confirm the challenges businesses are already facing: growing volatility, policy uncertainty, and lingering tension over tariffs. In particular, the on-again, off-again stance on tariffs has made long-term planning difficult for companies and investors alike.
Across industries, businesses are stockpiling inventory in anticipation of possible tariff increases, creating short-term boosts in demand that may later reverse. Meanwhile, attention is turning to employment trends—especially in manufacturing—as any rise in unemployment could move the U.S. closer to stagflation. While this remains a significant concern, there are also encouraging signs. Negotiations suggest the U.S. administration may be looking for an “off-ramp” on trade tensions, responding to mounting pressure from the business and financial communities. Although the trade dispute with China may take longer to resolve, discussions are now focused more on issues of market access and trade balance, offering room for eventual compromise.
For businesses considering expansion into the U.S., this moment presents a strategic opportunity. The slowdown has led to more favorable conditions: better access to infrastructure, more affordable leasing, and an improved labor market. Entering the U.S. market now allows companies to position themselves ahead of the next growth cycle, which we anticipate will resume gradually once the effects of the trade turbulence recede.
While inflation may rise modestly due to lingering tariffs, the Federal Reserve is expected to hold rates steady in the near term. However, should the economy slip into a deeper recession, there is a strong likelihood the Fed would respond by cutting rates to support recovery efforts. Overall, while the fear of recession is understandable, the underlying U.S. market remains resilient for those prepared to act strategically.
For those interested in exploring these dynamics further, we will be hosting an online event on May 14th at 1 PM EST dedicated to navigating U.S. market entry in the current environment. Register now: https://www.eventbrite.com/e/navigating-us-market-entry-amid-global-economic-uncertainty-tickets-1332038495999
Insights brought to you by our member Hannane Chouf, Business Development Manager, David French & Associates
About David French & Associates
At David French & Associates, a Los Angeles-based strategy and management firm, we specialize in helping local and international companies structure their expansion and succeed in the U.S. market. For over 30 years, we have supported businesses across sectors by combining strategic expertise with hands-on operational execution — from market entry planning to business model optimization, financing solutions, and supply chain development. In today’s rapidly shifting economic environment, knowing when and how to position a business in the U.S. is more critical than ever.
Insights brought to you by our member Hannane Chouf, Business Development Manager, David French & Associates
The U.S. economy is showing clear signs of slowing. The latest Federal Open Market Committee (FOMC) notes confirm the challenges businesses are already facing: growing volatility, policy uncertainty, and lingering tension over tariffs. In particular, the on-again, off-again stance on tariffs has made long-term planning difficult for companies and investors alike.
