JP Morgan analysts have warned that President Trump's aggressive tariff strategy may lead to substantial economic ramifications, increasing global recession risks from 40% to 60%. The new tariffs, announced as part of the 'Liberation Day' initiative, impose a sweeping 10% duty on imports, including major trading partners like China and the European Union. This has been cited as detrimental to US growth in the long run, as increased costs for imported goods may ultimately drive consumer prices higher, reflecting a broader, less favorable business environment.
JP Morgan's chief global economist warned that Trump's tariffs increase the risk of a global recession from 40% to 60%, indicating severe economic consequences.
In their note, economists emphasized that the most considerable risk to the global economy has been identified as 'disruptive US policies', a situation worsened by recent tariffs.
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