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Recession Fears Soar as Trump’s Tariffs Trigger Market Plunge

4/6/2025

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Summary

Story summary

Worries about a looming U.S. recession are intensifying as President Trump's new tariffs trigger sharp market declines. JP Morgan now estimates a 60% chance of recession, with the Dow plummeting 5.5%—its worst week since 2020. China's retaliatory tariffs amplify fears of a drawn-out trade war and a deepening economic downturn.

History

Historical Context

Worries about a U.S. recession echo past economic turmoil, notably the 1929 Great Depression triggered by high tariffs like the Smoot-Hawley Act. Similar to today, protectionist policies led to retaliatory measures, deepening economic woes. The current trade tensions with China reflect a historical pattern where tariffs disrupt markets, raise consumer prices, and threaten economic stability, intensifying fears of recession.

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Story summary

Worries about a looming U.S. recession are intensifying as President Trump's new tariffs trigger sharp market declines. JP Morgan now estimates a 60% chance of recession, with the Dow plummeting 5.5%—its worst week since 2020. China's retaliatory tariffs amplify fears of a drawn-out trade war and a deepening economic downturn.

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