Trump Tariffs Trigger Retaliation and Recession Fears

Newly implemented tariffs by President Trump have led to reciprocal actions by trading partners, with experts warning of economic risks reminiscent of the Great Depression.

• President Trump's new tariffs, enacted last week, have prompted immediate retaliatory measures from several countries, escalating global trade tensions.
• Former Federal Reserve official James Bullard likened the economic risks of the tariffs to the Smoot-Hawley Act of 1930, which deepened the Great Depression.
• Bullard emphasized that while a severe downturn is not inevitable, Wall Street's increasing recession probabilities reflect valid concerns over the policy's potential fallout.
• Trump defended the tariffs as necessary to protect U.S. workers and industries, accusing other countries of exploiting the United States for decades.
• The stock market has experienced significant declines, though the administration downplays the risks, citing recent positive job growth data.

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