Trade Tensions and Tariff Troubles: Is a Recession Looming?

Stock markets are shaky amid rising fears of a recession driven by aggressive tariff policies from President Trump. Economists are downgrading growth estimates, though a recession is not considered imminent. The broader impact of tariffs, investor anxiety, and economic policy shifts remain key concerns in pressing times.

The turbulence in the stock market is stoking fears of a recession, fueled by President Trump's tariff strategy. This week, the tech-focused Nasdaq plunged into correction territory, affecting investments and raising concerns among economists.

Once optimistic about tax cuts and deregulation under Trump's administration, business leaders are now grappling with the consequences of heightened trade tensions. The latest tariffs on steel and aluminum from Canada epitomize a shift in policy focus, with high-level import taxes affecting major trading partners.

Economists emphasize that while recession concerns are growing, it's not inevitable. The majority still forecast economic growth, albeit at a slower rate, while analysts remain vigilant, looking out for any signs of deeper economic shocks.

(With inputs from agencies.)