According to PANews, concerns are rising among economists about the potential for a U.S. economic recession if the latest round of tariffs imposed by U.S. President Donald Trump is not swiftly revoked. Mark Zandi, Chief Economist at Moody's Analytics, expressed that without significant exemptions, the economy may struggle to absorb these increased tariffs, making a recession more likely.
Zandi noted that the tariffs announced by Trump are more severe than even the worst-case scenarios previously considered. He advised preparing for potential economic shocks if these tariffs remain in place. On a static basis, the tariffs account for nearly 2% of the GDP, marking the largest tax increase since those implemented during World War II to fund the war effort.