As the economy faces new pressures, Larry Fink, CEO of BlackRock, the world’s largest asset manager with a whopping $10 trillion in assets under management, has voiced concerns about the ongoing economic slowdown. In an exclusive interview with CNN’s Kayla Tausche, Fink explained that CEOs across industries are reporting signs of a weakening economy, citing policy changes under the Trump administration as key factors. He noted that many businesses and consumers are “pausing” due to the uncertainty surrounding tariffs and workforce reductions, leading to a ripple effect that is already felt across various sectors.
“Talking to CEOs throughout the economy, I hear that the economy is weakening as we speak,” Fink said, reflecting a broader sentiment of caution among top leaders. He specifically pointed to the Trump administration’s aggressive tariff policies, which have caused friction with global trade partners, notably Canada and the European Union. Fink warned that their immediate impact could be harmful, especially in terms of consumer confidence and spending.
Moguldom reported on BlackRock on July 3, 2023, and how Fink’s former colleagues held key positions in the Biden administration, including Adewale Adeyemo at the Treasury, Brian Deese at the National Economic Council, and Michael Pyle as Kamala Harris’ then economic advisor.
And as usual, when America feels an economic pinch, Black Americans feel it as a punch. Inflation, illegal immigration crackdowns, and tariffs are harming Black Americans. ICE raids target workers, including non-criminals, while tariffs raise prices for consumers and small businesses. Inflation continues to rise, impacting everyday costs like eggs. Politicians fail to fully reveal the long-term costs of these policies, Moguldom reported in an article “A Warning To Black America About Inflation, Illegal Immigration Crackdown, And Tariffs.”
Meanwhile, the U.S. tourism industry is grappling with its own challenges, CNBC reported. According to recent data, Canadian visits to the U.S. have started to decline, which could have significant economic consequences. Canada has long been the top source of international visitors to the U.S., with over 20 million visits annually, CTV News reported. However, recent tensions are starting to affect Canadian travel patterns.
The U.S. Travel Association has warned that a 10 percent reduction in Canadian visits could result in $2.1 billion in lost spending and the loss of 14,000 jobs, Skift reported. Florida and Hawaii, which rely heavily on Canadian tourists, have already seen a noticeable dip in bookings, with rental managers reporting a 16 percent drop in Florida and 14 percent in Hawaii. A survey by Leger Marketing found that nearly half of Canadians are less likely to visit the U.S. in 2025, particularly among older and higher-income travelers.
The U.S. economy faces potential recession risks, with key indicators signaling strain. Declining housing starts, historically a recession precursor, are raising concerns. Alongside this, inflationary pressures, tariff policies, and austerity measures contribute to worries about economic stability. The Atlanta Federal Reserve predicts negative GDP growth in Q1 2025.
The convergence of these issues—economic uncertainty and the decline in cross-border tourism—signals a challenging period ahead for the U.S. economy. Fink remains optimistic about long-term growth, but his warning underscores the importance of addressing both domestic and international economic pressures. As BlackRock continues to manage trillions in assets, Fink’s insights serve as a critical indicator of the financial landscape, with implications for industries far beyond just the stock market.
