US President Donald Trump’s economic protectionism is causing increasing concern over a ‘Trumpcession’, experts warn, as Washington threatens numerous countries with devastating tariffs. Inflation is also hurting consumers in the US, sparking fears of a sharp economic downturn.
This comes as President Trump threatens the EU, Canada, Mexico and other countries with huge tariffs. Mark Zandi, chief economist at Moody’s Analytics, said on X: “Tariff wars, DOGE cuts to jobs and government programs and agencies, and deportations are sowing confusion, which puts a pall on investment, hiring and spending (…) Lawmakers need to get it together soon, or the economy will go from gagging to choking.” Daryl Fairweather, chief economist at Redfin, told Newsweek: “Businesses that rely on imported goods will suffer and could even shutter. People will lose their jobs as a result. The price of imported everyday items like household goods, appliances, cars and electronics will go up. Retaliatory tariffs will hurt American businesses that sell goods abroad.”
Andrew Foran of TD Economics said: “The economic impact of a sustained 25% tariff on Canada and Mexico would be severe, with full tit-for-tat retaliation likely to push Canada and Mexico into a recession and the US to a point of stagnant growth.”
This week, a Trump spokesperson warned of tariffs on the EU after accusing the bloc of “unfairness”.
White House trade adviser Peter Navarro told CNBC: “The concept here is one number-one number that reflects, in the aggregate, the unfairness embedded in the higher tariffs and non-tariff barriers that countries impose on us.”
The US President also threatened to impose tariffs on Mexico and Canada but has delayed these until April.
Mr Trump admitted this week that his tariffs on trading partners will cause “a little disturbance.”
Earlier this week, US stocks endured their worst day of 2025.
Dow Jones Industrial Average slid 427.51 points lower after already falling more than 600 points at session lows.
The Nasdaq Composite dropped 2.61% to 18.069.26, and the S&P 500 also plunged 1.7% to 5,738.52.
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