Billionaires And Economists Form Consensus On Recession Hitting America From Tariff Shocks: 10 Things To Know
A growing number of economists and business titans are sounding the alarm: the U.S. economy is on the brink of recession, and President Donald Trump’s aggressive tariff strategy is to blame. As markets tumble and global trade tensions escalate, some of Trump’s staunchest financial allies are now questioning his approach. After putting into place a dizzy number of tariffs on various countries, even the McDonald Islands, which are uninhabited and where penguins call home, on April 9, Trump put a 90 pause on tariffs–except for o China, which has a 145 percent tariffs.
Here are 10 things to know.
1. Jamie Dimon Sees Recession As Likely
JPMorgan CEO Jamie Dimon says a recession is the “likely outcome” of the ongoing trade war, warning that steep market declines and shaken consumer confidence could trigger a pullback in spending and investment, CNBC reported.
2. Markets In Turmoil
Stock indexes have plunged more than 9% in five days, with the Dow Jones Industrial Average shedding over 2,000 points. Bond yields are spiking as investors flee to safety.
3. China Retaliates With 84% Tariffs
China raised tariffs on U.S. imports from 34 percent to 84percent, following a fresh round of U.S. tariff hikes that reached 125 percent. The tit-for-tat escalation threatens to stall global trade flows, CNN reported.
4. JPMorgan Raises Recession Odds To 60 Percent
JPMorgan has revised its forecast, now assigning a 60 percent chance of a U.S. and global recession in 2025, up from 40 percent. The bank cited reduced business sentiment and supply chain disruptions.
S&P Global, Goldman Sachs, Barclays, and Deutsche Bank have all increased their recession risk estimates. Some banks, including RBC and UBS, have also slashed year-end S&P 500 targets.
5. BlackRock CEO: Recession Already Here
Larry Fink, CEO of BlackRock, says many CEOs already believe the U.S. is in a recession. He predicts inflation will remain high and interest rate cuts are unlikely in the near term, Fox Business reported.
6. Billionaire Pushback
Bill Ackman, a Trump supporter, called the tariffs a “major policy error,” warning they could trigger an “economic nuclear war,” he told CNN. Elon Musk echoed the sentiment, pushing for zero tariffs globally, ABC News reported.
7. Global Markets Slide
Stock markets in Asia, including Hong Kong and South Korea, are also plunging, reflecting global concerns over trade instability, Reuters reported.
8. Outlook Grows Bleaker
With consumer sentiment fading and investor confidence shaken, the prospect of a prolonged downturn is becoming more real—unless trade talks resume soon.
9. Economists Warn Of ‘Ugly’ Inflation
American consumers should brace for a surge in prices by summer, as Trump’s tariff policies ripple through the economy, economists say.
“I suspect by May — certainly by June, July — the inflation statistics will look pretty ugly,” said Mark Zandi, chief economist at Moody’s.
Tariffs, which act as taxes on imports, are paid by U.S. businesses and typically passed along to consumers. As a result, shoppers will lose about $4,400 in purchasing power in the “short run,” according to a Yale Budget Lab analysis of recently announced tariff policy, CNBC reported.
10. Was It Market Manipulation
Accusations of market manipulation erupted after President Trump’s surprise 90-day tariff pause sparked a massive market rally–especially since that morning at 9 a.m. he tweeted on his Truth Social, ““THIS IS A GREAT TIME TO BUY!!! DJT.” Critics, including Rep. Steven Horsford and Sen. Adam Schiff, questioned whether the abrupt announcement—made mid-hearing as Trump’s trade rep testified before Congress—was strategically timed to influence markets, PBS reported. The S&P 500 surged over 9 percent, prompting Schiff to call for a congressional investigation into possible insider trading, Time reported. People are also pointing to a social mdia post days earlier taking about the 90-day pause–before it was announced. The Whit House at the time called the post fake news,” but it did cause a short spike in the stock market. “Trump is considering a 90-day pause in tariffs for all countries except China,” Walter Bloomberg posted in all-caps alongside an alarm emoji on X.
