Washington – He global economy It seemed to be in an open rebellion against the president Donald Trump’s tariffs like them It entered into force Wednesday.
Business executives warn of a Potential recession caused by their policies, some of the best commercial partners They are retaliation with theirs Import taxes and the stock market is trembling after decline days.
Trump’s rates began Shortly after midnight, including 104% in China products, 20% in the European Union, 24% in Japan and 25% in South Korea. Administration officials have tried to reassure voters, republican legislators and CEO that the fees are negotiable, but by their own admission, that process could take months.
When a recession appears on the horizon, investors generally crowded in the United States Treasury notes as a safe refuge, seeing the federal government as a source of stability. Not this time. The prices of government bonds have dropped, which increases the interest rate in the United States treasure note to 10 years to 4.39% in a sign that the world is increasingly appealed to Trump’s movements.
The Republican president was publicly challenged when the stock market recovered slightly and then sold in the morning trade.
“This is a good time to buy!” He published in Truth Social, his social media site. “Be great! Everything will work well. The United States will be bigger and better than ever!”
The presidents often receive a credit or guilty undue to the state of the economy of the United States, since their time in the White House is subject to financial and geopolitical forces beyond their direct control. But by imposing unilaterally tariffs, Trump is exerting an extraordinary influence on trade flow, creating political risks that could be difficult to avoid if their plans do not work. After early success to exercise control over US institutions, from law firms and universities to federal agencies and cultural organizations, now faces global markets that will not simply be folded at their will.
The CEO and president of JPMorgan Chase, Jamie Dimon, said that “probably” there would be a recession, although he also postponed his economists.
“I think solving these tariff problems and commercial problems would be a good thing,” he said in an interview with “Mornings With Maria” by Fox Business Network.
In CNBC, the CEO of Delta Air Lines, Ed Bastian, said the administration was less strategic than during Trump’s first mandate.
“Trying to do everything at the same time has created chaos in terms of being able to make plans,” he said, and pointed out that the demand for air trips has weakened.
Economic forecasts say that Trump’s return to the White House has had a series of negative and waterfall impacts that could put the country in a recession.
“Simultaneous shocks for consumer’s feeling, corporate trust, trade, financial markets, as well as prices, new orders and the labor market, will include the economy in the recession in the current quarter,” said Joe Brusuelas, chief economist of the RSM consulting.
The secretary of the Treasury, Scott Besent, said previously that it could take months to reach agreements with countries in tariff rates, and the administration has not been clear if the 10% basal rates imposed on most countries will remain in place. But in an appearance in “Mornings with María”, Besent said the economy “would shoot again to all cylinders” at a point of the “not too distant future.”
He said there has been an “overwhelming” response from “countries that want to come and sit at the table instead of increasing.” Besent mentioned Japan, South Korea and India. “I will notice that they are throughout China. We have Vietnam today,” he said.
Even when the administration has tried to calm the world, new risks are being formed.
China imposed 84% of tariffs on the assets of the United States. Canada now has automatic tariffs to match the 25% that Washington charges. The EU approved new taxes on US assets. After steel and aluminum tariffs of 25% of Trump.
Trump is already asking for more rates, looking at copper, wood and computer chips. In a speech on Tuesday night, he said that imported drug taxes would occur soon.
