10th April 2025
Economists Warn of Impending U.S. Recession
Peter Berezin, chief global strategist at BCA Research, predicts that the U.S. is entering a recession despite the recent tariff suspension.
Berezin suggests that previous strong corporate earnings were inflated by consumers and businesses stockpiling goods ahead of anticipated tariff hikes.
He warns of a vicious cycle of reduced consumer spending, corporate layoffs, and stalled investments, potentially leading to rising unemployment.
Berezin criticises Trump's trade strategy as inconsistent and economically flawed, questioning both the objectives and the execution of the tariff policies.
The ongoing trade tensions contribute to market volatility, with investors remaining cautious about future economic stability.
Tariff Suspension Announced
President Donald Trump declared a 90-day suspension of newly planned tariffs on most countries, aiming to facilitate trade negotiations. China remains an exception, now facing a 125% tariff.
Global stock markets responded favorably, with indices like the FTSE 100 and Germany's DAX experiencing significant gains.
European Commission President Ursula von der Leyen welcomed the pause as an important step toward stabilising the global economy.
Despite the rally, some analysts remain cautious, citing ongoing trade tensions and potential long-term economic impacts.
In response to U.S. measures, China imposed combined tariffs reaching 84% on all U.S. imports, intensifying trade tensions
News written by Zhangir Meshitbek | Published by Zhangir Zhangaskin
