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Updated: 4 hours ago

Despite tariff uncertainty, US economy in 'pretty good spot,' regional expert says

U.S. dollar bills Photo / Courtesy of Pixabay Mainebiz checked in with a regional economist for his take on the U.S. and Maine's economy.
By Renee Cordes

Using a metaphor about ice cream to illustrate differing views of the U.S. economy, a regional expert is sticking to his view that the nation's financial landscape remains on solid footing despite uncertainties related to tariffs and trade policy.

Ken Entenmann of NBT Bank
File photo / Courtesy of NBT Bank
Kenneth J. Entenmann

Just like some people prefer soft-serve ice cream while others prefer the hard-pack variety, consumer sentiment and other soft data "look terrible" while hard data on growth and employment are actually “pretty solid," Kenneth J. Entenmann, chief investment officer and chief economist at NBT Wealth Management, said in a Monday phone interview.

NBT Wealth Management is a division of NBT Bancorp Inc. (Nasdaq: NBTB), a Norwich, N.Y.-based financial holding company with bank branches in seven states. In Maine, NBT employs 35 people, including a Portland-based banking team and employees of the firm's national benefits administration firm.

In January, Entenmann told a gathering in Portland that the consumer-driven U.S. economy was starting 2025 “in a really good, strong spot.”

Four months later, he points to recent jobs and inflation data, along with solid corporate first-quarter earnings, as evidence of a robust economy.

“We’re in a pretty good spot, all things considered,” he told Mainebiz.

''Freer and fairer trade environment'

As for tariffs, Entenmann repeated his earlier observation that President Donald Trump would use tariffs as a negotiating tool and remains optimistic about the outcome.

“All of these negotiations, regardless of how they ultimately settle, are going to result in a much freer and fairer global trade environment,” he said.

His remarks come after U.S. stock markets on Monday reacted positively to news of a trade truce, with the U.S. and China each agreeing to suspend tariffs for 90 days.

“It certainly lessens the uncertainty but it doesn’t eliminate it,” Entenmann said.

Tax and regulatory reforms

While tariffs have been front and center of the Trump administration’s economic agenda, Entenmann expects the attention to soon shift to planned tax and regulatory reforms expected to be positive for business.

“On the taxes and then on the regulatory front, there hasn’t been much focus on that yet, but those two things were viewed as high pro-growth,” Entenmann said. “And I think that you’re going to hear more of it.”

Entenmann is also upbeat on Maine’s economy and tourism businesses despite the short-term impact of Canadians cancelling U.S. travel plans  — including Old Orchard Beach in southern Maine — in part, to protest this country’s trade policy. (Exchange rates were also a factor.)

“I doubt that’s going to be sustained in the long term unless we get the absolute worst case in tariff negotiations,” he said. Whatever hit Maine tourism businesses are taking now, he said, "I think it will likely be short-lived."

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