President Donald Trump’s recent decision to impose fresh tariffs on several imports has sparked serious conversations about the health of the U.S. economy. Many business experts and top economists have warned that the new tariff measures could drag the United States into another recession, which could have ripple effects across the global market.
The tariffs have already triggered panic among investors, causing a sharp market reaction. According to reports, nearly $6 trillion was wiped off the market shortly after the announcement. Economists are now keeping a close eye on the potential damage to America’s economic growth and rising inflation.
A group of nearly 900 economists, including respected Nobel Prize winners like James Heckman and Vernon Smith, signed a public letter criticising the tariff decision. They described Trump’s move as “misguided” and warned that it could lead to a self-created recession. The experts argue that the policy misunderstands basic economics and will end up hurting ordinary Americans by pushing up prices of goods and services.
Top players in the business world are also sounding the alarm. Jamie Dimon, the CEO of JPMorgan Chase, said the tariffs could increase inflation and further weaken the U.S. economy, which is already struggling to gain momentum. Larry Fink, the CEO of global investment firm BlackRock, added that several top executives believe the U.S. might already be experiencing a mild recession, largely due to Trump’s trade actions.
A recent business survey further highlighted these worries. The survey showed that more than 60% of CEOs expect a recession to hit the U.S. within the next six months. Around 75% of the company leaders believe the tariffs will negatively affect their businesses in 2025. Nearly two-thirds of them openly oppose the proposed levies, some of which have been put on hold for now.
Alec Kersman, the managing director of investment firm Pimco, revealed that the chances of a U.S. recession happening in 2025 have risen from 15% in December 2024 to 35% as of now. Even though Pimco still expects the U.S. economy to grow slightly—between 1% and 1.5%—this is much lower than earlier projections.
The effects of the tariffs are not limited to the U.S. alone. The global financial market is also feeling the heat. Investors are now nervous, and many stock markets are showing signs of stress. The uncertainty caused by Trump’s aggressive trade policies has created confusion among businesses around the world. Analysts say governments now have fewer tools to fight economic problems because of inflation caused by the tariffs.
Emerging markets are among the worst hit. The MSCI Emerging Markets Index saw its biggest one-day fall since the 2008 global financial crisis. Experts say this is proof that the U.S. tariffs are shaking investor confidence globally and making financial markets more unstable.
While it is still unclear how long the tariffs will last or what the full outcome will be, one thing is certain: many experts are urging caution. They say trade policies should be carefully planned to avoid causing harm to both local and international economies.
