JPMorgan Analysts Warn: Recession Risk Soars to 60% Following Trump’s Tariff Announcement—’Prepare for Impact’

JPMorgan’s chief global economist, Bruce Kasman, has some strong words about President Trump’s recent tariff actions. He warns that the chances of a global recession have jumped from 40% to 60%. This shift comes after the announcement of new tariffs—a move Kasman describes as a potential disaster for the economy.

In his update, Trump declared a 10% tariff on imports from all countries, with even steeper fees for 60 countries facing trade deficits with the U.S. This includes major players like China, Japan, and EU nations. For many businesses, these tariffs could mean higher prices on everyday items, from groceries to cars.

Experts note these tariffs function like a tax increase on American consumers and businesses. Earlier predictions suggested that costs might rise for many imports, hitting consumers where it hurts. According to a report by JPMorgan, the new tariffs could raise the average tax rate on imports by about 22%. This would be one of the largest tax hikes since World War II.

Kasman’s team stresses the seriousness of these policies, stating they could push the U.S. and possibly the global economy into recession if they continue. Yet, it’s essential to note that not all economists agree. Some believe that the economy still has strong fundamentals that could absorb modest shocks.

Historically, tariffs have varied in impact. The 1930 Smoot-Hawley Tariff Act, which raised duties on imported goods, is often blamed for exacerbating the Great Depression. Experts today worry that similar outcomes could arise from current tariff strategies.

On social media, reactions to the tariffs have been mixed. Some users express concern about rising prices, while others support the idea of protecting American jobs. There seems to be a growing conversation about balancing trade and maintaining economic stability.

In summary, the unfolding trade situation has significant potential implications for the economy. As events develop, both experts and the public are closely watching how these policies affect pricing and business sentiment. It’s a complex issue, and only time will tell how it all plays out.

Check out this related article: Dow Futures Plunge as Tariffs Trigger Biggest Market Drop Since 2020: Stay Updated with Live Insights

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