President Trump’s tariffs on steel and aluminum, as well as the ongoing trade war, have raised concerns about the potential for a recession. Trump has confirmed that additional duties will be implemented in early April, leading to retaliation from Canada, the EU, and possibly Mexico. The uncertainty created by the trade war has caused U.S. stocks to fall and fears of a recession to rise.
The Organization for Economic Cooperation and Development (OECD) has warned that Trump’s tariffs and trade war will slow growth in the U.S., Canada, and Mexico, driving up inflation and impacting American consumers. The OECD has revised its economic growth forecast downward, citing the potential negative effects of additional tariffs.
Economists agree that tariffs raise consumer prices and negatively impact economic output and income. While tariffs may benefit domestic manufacturers, they can also affect companies in the global supply chain. Trump’s motivations for imposing tariffs include seeking help from China, Canada, and Mexico to address issues such as illegal migration and drug trafficking.
The threat of tariffs and rising costs of everyday items have raised concerns about a potential recession. The International Monetary Fund defines a recession as an extended period of economic downturn, marked by factors such as rising unemployment, lower profits for companies, stock market declines, and falling home prices. The exact timing and impact of a potential recession remain uncertain.
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