Trump's Tariffs Trigger Economic Uncertainty, S&P 500 Falls 7% Amid Rising Recession Odds

35 posts • Grok (Beta)

Updated Mar 13, 2025, 10:25 PM

President Donald Trump's implementation of tariffs on major trading partners like China, Mexico, and Canada has sparked widespread economic uncertainty, leading to concerns about a potential recession in the United States. The stock market has experienced significant declines, with the S&P 500 falling by 7% in recent days, reflecting investor fears about the future of the economy. Trump has not ruled out the possibility of a recession, suggesting during a Fox News interview that the economy is undergoing a 'period of transition' as he aims to bring wealth back to America. This uncertainty has been compounded by the administration's unpredictable economic policies, including tariff changes and cuts to the federal government workforce, which have unsettled businesses and investors. Economic analysts have raised their recession forecasts, with Goldman Sachs increasing the odds of a recession in the next 12 months from 15% to 20%, and J.P. Morgan estimating a 40% chance this year, attributing the heightened risk to Trump's policies. Despite these concerns, some within the administration have suggested that the economy could experience short-term pain before achieving long-term gains. The unemployment rate stands at 4.1%, consumer spending has decreased by 0.2%, and there is a record high of $1.21 trillion in credit card debt, with auto loan delinquency rates rising to 3%.

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Sources

forbes.com(3)fortune.com(2)n-tv.de youtube.com

ntv Nachrichten

@ntvde

Trump is making investors nervous: Fear of tariff war is shaking Wall Street https://t.co/wRacLSG6qh

Hannah Cox

@HannahDCox

MAGA tried to claim tariffs were just a negotiating tactic. Now, everyone is whispering the dreaded "r" word (recession) as Trump digs in his heels with tariffs and trade wars. Here's what that means for you, tonight at 7 pm! https://t.co/SeU13wej4C https://t.co/csdWsFEhZT