JPMorgan Cautions That Trump's Tariff Policies May Drive U.S. Into Recession by 2025

Tariffs that have been imposed by President Donald Trump recently had the potential to become the jinx that pushes the U.S. to recession in the year 2025, as stated in a research document published by JPMorgan. Foreign importation costs of many goods, which they claim will weigh down consumer spending and business investment, are thought to be the causes of a future downturn.

In a wide variety of industries, the tariffs with a newly acquired target began to directly inflate the price of everything from crucial raw materials to finished products for their companies. Such increased costs would ripple along supply chains and lead to even further inflation disappointments that have plagued the economy ad infinitum. Higher prices, with the reducing effect on purchasing power, could possibly then mean a weak GDP.

According to economists at JPMorgan, the repercussions go beyond instant spikes in prices. The world's trade relations will be severely damaged, now and into the long-term, due to decreased production growth rates and increased operational costs that businesses will incur, causing layoffs, or at best restraint of hiring.

The Federal Reserve will one day have to face the double-edged sword of inflation and economic stabilizer lay blame of inflation on the tariffs. Thus, even in the case that inflation is caused partly by the tariffs, the bank will have no choice but to hold interests at high levels for a long time to come.

Proponents of tariffs argue they are there to protect domestic industry and even grow U.S. manufacturing: against this argument, critics would find that the cost is a much bigger price to pay than any benefits. The trade policy being criticized and its implications attach further uncertainty to the U.S. economy, as are listed by the report issued by JPMorgan.

"Tariff" from the perspective of the United States economy is, at best, a temporary protection. Any further talk about protectionism potentially stunting the growth of the economy will signal an unusual warning to both businesses and consumers. Should the alleged recession hasten its gloomiest doorstep, a new economic environment will manifest on earth and leave a decidedly heavy footprint on the decision-making matrix of coming years.