Trade Wars Unleash Economic Turmoil: Industry Giants Sound Alarm

Industry leaders from sportswear to automotive lament the devastating impact of President Trump's trade tariffs, sparking fears of a U.S. recession. European, Canadian, and South Korean markets react with retaliations and strategic shifts. Economists warn of lasting damage to the international trade landscape.

Industry leaders across sectors, including luxury cars, chemicals, and sportswear, have sounded a warning over the economic turmoil unleashed by President Donald Trump's trade tariffs. The increased duties on U.S. steel and aluminum, which took effect on Wednesday, have prompted retaliatory measures from Europe and Canada.

The back-and-forth implementation of tariffs has disrupted industries, weakened consumer sentiment, and caused stock markets to tumble. Agriculture executives and traders have voiced concerns over the erratic pace of policy changes, making it challenging to adjust business plans accordingly. Automakers face paralysis with the looming threat of 25% tariffs on imports from key regions.

Economists, like JPMorgan's Bruce Kasman, forecast a potential U.S. recession, warning of long-term damage to the nation's attractiveness for investment. The repercussions extend globally, affecting industries from cosmetics to aerospace, with European spirits and U.S. beer producers particularly hard hit. Analysts fear the broader implications as consumer and corporate spending stalls amid these uncertainties.

(With inputs from agencies.)