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Trump Suspends Tariffs; Recession Fears and Risks Remain

4/12/2025

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Summary

Story summary

President Trump has granted a 90-day reprieve on trade tariffs, bringing a glimmer of hope amid recession worries as market forecasts adjust. However, economists caution that risks remain high, especially with a staggering 145% duty on China. While Goldman Sachs has lowered recession odds to 45%, concerns over market volatility and inflation continue to loom, threatening consumer spending and economic stability.

History

Historical Context

President Trump's 90-day reprieve on trade tariffs echoes historical tariff policies, notably the Smoot-Hawley Tariff Act of 1930, which raised tariffs to protect U.S. industries but worsened the Great Depression by provoking retaliatory measures. Economists warn that high tariffs can lead to market volatility and inflation, similar to past economic downturns caused by protectionist policies that stifled international trade.

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Story summary

President Trump has granted a 90-day reprieve on trade tariffs, bringing a glimmer of hope amid recession worries as market forecasts adjust. However, economists caution that risks remain high, especially with a staggering 145% duty on China. While Goldman Sachs has lowered recession odds to 45%, concerns over market volatility and inflation continue to loom, threatening consumer spending and economic stability.

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