Trump’s Tariffs Could Push the U.S. Economy into Recession, According to Financial Experts

April 5, 2025 - 20:13

Donald Trump’s tariffs will tip the world’s largest economy into recession, America’s biggest investment bank has warned. As trade tensions escalate, the implications of these tariffs are becoming increasingly concerning for economic stability. Analysts believe that the imposition of tariffs can lead to higher consumer prices and reduced purchasing power, ultimately slowing down economic growth.

The investment bank's report highlights that the tariffs not only affect specific industries but also create a ripple effect throughout the economy. Businesses may face increased costs, which could lead to layoffs and reduced investment in expansion. Furthermore, the uncertainty surrounding trade policies may deter foreign investment, compounding the potential for an economic downturn.

Experts argue that sustained tariffs could disrupt supply chains and lead to retaliatory measures from trading partners, further exacerbating the situation. As the economy faces these challenges, the risk of recession looms larger, prompting calls for a reassessment of trade strategies to safeguard economic health.