"Is a US recession looming in 2025? Experts warn the trade war could push us into it!"
This article was first published on Coinpedia Fintech News.
There is growing talk of a possible US recession in 2025, linked to the ongoing trade war between the US and China, which we have been hearing about for months. Experts say that if the situation does not change soon, we could experience a massive economic recession in 2025.
The likelihood of a recession in 2025 is increasing.
Since Trump took office for a second term, the US economy has remained stable for a while, but it is now facing serious problems. Torsten Slok, an economist at Apollo Global Management, recently warned that the US could experience a recession by 2025, primarily due to the trade war with China.
In an interview, Slok explained that if tariffs on Chinese goods remain as high as they are now, up to 145%, the United States could face a 4% decline in GDP, leading to an economic contraction for two quarters.
The odds of a US recession in 2025 are increasing, with Bull Market now estimating a 56% probability, and these numbers are continuing to rise. However, this would represent a significant setback for the economy, impacting businesses and individuals alike.
With no clear steps from the Federal Reserve to cut interest rates, the United States could be headed for an economic storm, and these numbers are constantly increasing.
Impact on Business and Jobs: Are We Feeling It Yet?
Not only is there a 56% chance of a recession, but the effects of this trade war are already being felt. Major retailers, such as Walmart and Target, are preparing for supply shortages.
The main reason for this shortage is that tariffs have made it more difficult for goods to reach the United States. Even worse, reports indicate a massive 60% drop in shipments. This could lead to supply shortages and even layoffs, making life even more difficult for many Americans.
Small businesses are at risk
It's not just large corporations that are suffering, but also small businesses, particularly in the manufacturing sector. Tariffs are raising costs, and many of these companies are already at risk of bankruptcy. If things don't change, more small businesses may be forced to close.
Can we avoid a recession?
It's still unclear whether the United States will enter a full-blown recession in 2025. What is certain, however, is that the trade war with China is having a significant impact. If tariffs continue, we could see further job losses and higher costs.
