Stock Market Plummets Amid Increased Recession Fears from Trump's Tariff Hikes
President Trump's tariff hikes worsen economic outlook, raising recession chances to 60% according to JPMorgan, as stock markets face significant declines.
The increases are so large and are taking effect so rapidly that they are likely to be disruptive to the economy, economists say, even if they are partially rolled back through negotiations in the coming weeks or months.
Will the tariffs lead to a recession? Here's how to know if we're in one
ABC News·11d·ReliableThis source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.CenterThis outlet is balanced or reflects centrist views.Should the tariffs remain in place for an extended period, they will likely raise costs and uncertainty for businesses, which could reduce their willingness to hire, invest in new equipment or software, or expand into new markets.
Will the tariffs lead to a recession? Here's how to know if we're in one
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Despite stocks plunging, Trump has brushed off concerns.
J.P. Morgan Chase CEO Has Grim Warning About Trump’s Tariffs
HuffPost·11d·Mostly ReliableThis source is generally reliable but sometimes includes opinion, propaganda, or minor inaccuracies.Leans LeftThis outlet slightly leans left.
The job of documenting the economic cycles, including recessions, does not fall to the federal government.
Tariffs are fueling fears of a recession. What does it take to actually declare one?
NPR·12d·ReliableThis source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.CenterThis outlet is balanced or reflects centrist views.
The CEO of America’s largest bank warned tariffs put a heavy load on an already-weakening economy.
Jamie Dimon warns tariffs need quick resolution as banks up recession risk
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Summary
President Trump's recent implementation of large tariff hikes has caused a significant stock market downturn, heightening recession worries among economists and Wall Street. The tariffs, set to impose a 10% duty on nearly all countries and additional taxes on 60 nations, have led Goldman Sachs to raise its recession probability to 45% from 35%, while JPMorgan projects a 60% chance. Economists express concerns these tariffs will disrupt global supply chains, lead to inflation peaks of 4.4%, and dampen consumer confidence. Despite extensive job gains thus far, surveys indicate growing unease about the economic climate.
Perspectives
Trump's recent tariffs have raised concerns about a recession, with economists at Goldman Sachs and JPMorgan increasing forecasts for recession probability to as high as 60%.
The tariffs could result in inflation, increased prices for consumers, and disruptions in global supply chains, potentially slowing down economic growth.
While current job data remains strong, there is growing anxiety among investors and consumers about longer-term economic impacts, and the Federal Reserve remains cautious about interest rate adjustments.
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