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Trump’s Tariff Policies Stir Economic Uncertainty as Recession Fears Grow

President Trump’s on-again, off-again tariffs and trade war threats have unsettled markets, businesses, and consumers, raising concerns about inflation, layoffs, and economic growth.

  • Economists warn that President Trump’s fluctuating trade policies, including tariffs on Canada, Mexico, and China, are creating uncertainty and dampening business confidence.
  • U.S. stock markets have experienced significant volatility, with major indices logging their worst weekly losses since September and the Nasdaq entering correction territory.
  • Consumer confidence has fallen sharply, with February data showing its steepest monthly decline since 2009, while consumer spending has also dropped unexpectedly.
  • The Federal Reserve is maintaining a cautious stance, with Chair Jerome Powell highlighting the uncertainty surrounding tariffs but refraining from immediate policy changes.
  • Canada’s new Prime Minister, Mark Carney, has pledged retaliatory tariffs in response to Trump’s trade measures, further escalating tensions between the two nations.
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