April 3, 2025
Article from Economic Times
Article Synopsis
President Donald Trump’s broad tariff actions have raised concerns among economists, with JPMorgan Chase warning that the measures could push the U.S. economy close to a recession. Wall Street investors fear disruptions to global trade and economic stability, as Trump’s tariffs—10% or higher on various imports—could reduce economic growth and consumer spending.
JPMorgan’s chief U.S. economist, Michael Feroli, warned of shrinking real disposable income and rising inflation, potentially reaching 4%. He likened the tariffs to the largest tax increase since 1968. The tariffs could push the average effective tariff rate above 23%, the highest in over a century. UBS economists predict a technical recession and rising unemployment, with the jobless rate possibly increasing to 5.5%.
