Economists Warn Trump Tariffs Threaten U.S. Economy, Predict Recession Risks

Economists are sounding alarms over the negative impacts of President Donald Trump's trade war, which has already led to a significant $10 trillion drop in market value. Jeffrey D. Sachs criticized the administration's tariff policies as a reckless approach that could destabilize the global economy and increase economic uncertainty. The Penn-Wharton Budget Model projects that the tariffs could reduce U.S. GDP by approximately 8% and wages by 7%, with consumers bearing the brunt of the costs. Analysts also draw parallels between the current economic climate and the aftermath of Liz Truss's disastrous mini-budget in the UK, suggesting that similar fallout could occur in the U.S. as investors respond to Trump's unpredictable strategies. The ongoing tariff tensions have led to retaliatory measures from China, raising concerns about the stability of U.S. Treasury sales and the country's financial health overall.