Economists Warn of Rising Recession Risks Linked to Trump's Trade Policies

Experts cite tariff uncertainty, declining consumer confidence, and stock market volatility as key factors increasing the likelihood of a U.S. recession in 2025.

Economists highlight the unpredictable nature of Trump's tariff policies as a major factor eroding business and consumer confidence, making long-term planning difficult for companies.
Key recession indicators, such as an inverted yield curve, rising unemployment claims, and weakening consumer sentiment, are being closely monitored, though a recession has not yet been officially declared.
The latest Consumer Sentiment Index fell sharply by 10.5% in March, reflecting widespread economic uncertainty across demographic and geographic groups.
Experts predict that if a recession occurs, it may involve persistent inflation, slower consumption growth, and a modest rise in unemployment, rather than resembling past downturns like 2008 or 2020.
Financial advisors recommend individuals prepare for potential economic challenges by reducing expenses, avoiding new debt, and diversifying investments into safer assets like bonds and precious metals.