JPMorgan Predicts US Recession Linked to Trump's Tariff Strategy

April 5, 2025 - 02:00

JPMorgan has made a bold prediction, forecasting that the aggressive tariff measures initiated by former President Donald Trump will lead the United States into a recession in the latter half of 2025. This marks a significant stance as JPMorgan becomes the first major Wall Street bank to openly project a downturn in the economy directly tied to these trade policies.

The bank's analysts suggest that the tariffs, designed to protect American industries, may inadvertently stifle economic growth by increasing costs for consumers and businesses alike. As prices rise due to these tariffs, consumer spending could decline, leading to a potential contraction in economic activity.

Furthermore, the bank emphasizes the interconnectedness of global markets, warning that retaliatory measures from trading partners could exacerbate the situation. The forecast has generated discussions among economists and investors, with many keeping a close eye on how these tariffs will unfold in the coming years. As the financial landscape evolves, the implications of these predictions could have lasting effects on both domestic and global economies.