Consumer spending is a key indicator of economic health, representing over two-thirds of U.S. economic activity. A decrease in spending can signal a potential economic slowdown. Tariffs are taxes imposed on imported goods, often impacting consumer prices and spending habits. - U.S. consumer spending experienced an unexpected decrease of 0.2% in January, marking the most significant drop in four years. - The decline in spending is partially attributed to unseasonably cold weather conditions across the country. - Economists suggest that the Trump administration's tariff policies are contributing to consumer uncertainty and reduced spending. - Despite the drop in spending, annual inflation has slowed, leading to speculation about potential Federal Reserve interest rate cuts. - The goods trade deficit reached a high point, adding to economic concerns.