"Is a U.S. economic recession looming in 2025? Experts warn that the trade war may push us towards it!"
This article was first published on Coinpedia Fintech News.
Talk of a potential economic recession in the United States in 2025 is increasing, linked to the ongoing trade war between the United States and China, which we have been hearing about for months. Experts say that if the situation does not change soon, we may witness a massive economic recession in 2025.
Increasing chances of a recession in 2025
Since Trump took office for a second time, the U.S. economy remained stable for a while, but it is now facing serious issues. Thorsten Sahlke, an economist at Apollo Global Management, recently warned that the U.S. could experience an economic recession by 2025, primarily due to the trade war with China.
In an interview, Thorsten Sahlke explained that if the tariffs imposed on Chinese goods remain as high as they are now, reaching up to 145%, the United States could face a 4% decline in GDP, leading to an economic contraction for two quarters.
The likelihood of an economic recession in the United States in 2025 is increasing, with Bolly Market now estimating a 56% chance of recession, and these figures are continuously rising. However, this would represent a significant setback for the economy, affecting both companies and individuals.
In the absence of clear steps from the Federal Reserve to lower interest rates, the United States may be heading towards an economic storm, and these figures are continuously rising.
Impact on businesses and jobs: Are we feeling it yet?
It's not just about the 56% likelihood of recession; the effects of this trade war are starting to show in reality. Major retailers, such as Walmart and Target, are preparing for supply shortages.
The main reason for this shortage is that tariffs have complicated the arrival of goods to the United States. Worse yet, reports indicate a massive decline in goods shipments by 60%. This could lead to supply shortages and even layoffs, making life more difficult for many Americans.
Small businesses are at risk
The suffering is not limited to large companies; it also includes small businesses, especially in the manufacturing sector. Tariffs are raising costs, and many of these businesses are already at risk of bankruptcy. If things do not change, more small businesses may be forced to close.
Can we avoid a recession?
It remains unclear whether the United States will enter a full-blown economic recession in 2025. But what is certain is that the trade war with China has a significant impact. If tariffs continue, we may see more job losses and rising costs.
