US stocks experienced a rollercoaster ride on Monday as President Donald Trump is set to unveil new tariffs on April 2. The move has raised recession fears among experts, with Goldman Sachs recently increasing its odds of a recession within the next year from 20% to 35%. Tariffs could lead to a slowdown for businesses due to higher tax costs and reduce consumer spending, potentially tipping the US into a recession.
Experts point to risks such as a shopping slump, increased prices, and uncertainty over the tariffs’ degree and duration. Mark Zandi, chief economist at Moody’s Analytics, described the upcoming tariffs as “the fodder for an economic downturn.” Anne Villamil, a professor of economics at the University of Iowa, warned that if business investment suffers, it can trigger a recession.
The economy remains robust in some areas, with low unemployment and historically low inflation. However, the uncertainty surrounding Trump’s tariff policy is causing consumer confidence to drop, potentially leading to price increases and reduced spending. Experts agree that while the current economic indicators look strong, the introduction of new tariffs poses significant risks to the US economy.
Source: https://abcnews.go.com/Business/trumps-tariffs-cause-recession-experts/story?id=120329597