JPMorgan economists have raised the risk of a global recession from 40% to 60%, citing President Trump’s sweeping new tariff policy. In a Thursday research note, Chief Global Economist Bruce Kasman and colleagues said the administration’s so-called “Liberation Day” tariffs could deliver long-term economic damage.
Trump announced 10% tariffs on all imports to the United States, with higher rates for 60 nations that maintain trade deficits with the U.S. The policy expands existing tariffs on China, Mexico, Canada, and others.
The JPMorgan note warns that the U.S. average tax rate on imports could rise by 22 percentage points to 24%, equivalent to 2.4% of national GDP. Analysts describe this as the largest effective tax hike since World War II.
The economists predict the tariffs will increase household and business costs, potentially triggering retaliation and disrupting supply chains. “There will be blood,” Kasman wrote, calling U.S. trade policy the year’s biggest threat to the global outlook.
Source(s)
Discover more from News Facts Network
Subscribe to get the latest posts sent to your email.
