Donald Trump's proposed trade war may lead to 75% chance of a US recession, says a Wall Street strategist

Donald Trump emerged victorious in the US Presidential elections, and as soon as he comes to power following the end of Biden's tenure, his proposed set of economic plans will begin seeing the green light, and according to a Wall Street strategist, some of it could make the possibility of a US recession a harsh reality.

US recession fears could turn real under Donald Trump?

Peter Berezin, the chief global strategist for BCA Research, has suddenly claimed that the chances of a nationwide recession could become a major possibility ever since President-elect Donald Trump's win against Kamala Harris in the US elections 2024 last week. The chances of recession has just risen from 65% to 75% as per Berezin, with its inception possibly after the start of Donald Trump's tenure as the US President, according to a Business Insider report.

The labor market has already begun weakening amid the US election season, and if things stay the same around employment data, the US economy has a massive chance of going into a recession period that could be tough to recover from very soon.

Trump's proposed tariff increase could become the US economy's 'double whammy'

Donald Trump has been quite firm about his decision to increase tariffs on imported products in order to safeguard local business and keep them thriving. However, that could lead to a pressure on American citizens' pockets, as prices of goods may increase after this call. This could also depress the corporate investment and lower real household disposable income for US-based consumers, according to Peter Berezin.

FAQs:

Is the US economy under a major fear of recession?
There are increased chances of the arrival of a nationwide recession when Donald Trump comes to power at the White House, according to top market analysts.

Has Donald Trump won the US Presidential elections?
Yes, Donald Trump has secured a massive victory in the US Presidential elections 2024 after beating Kamala Harris of the Democratic Party.