New York, NY – Economists are growing increasingly concerned about the possibility of a recession looming over the US economy this year as a result of President Donald Trump’s controversial tariff policies. The erratic nature of Trump’s approach to tariffs has continued to unsettle markets, leading to a significant drop in business and consumer confidence.

The uncertainty surrounding the tariff trade war initiated by the president has caused investors to worry about the potential impact on economic growth. This unease was reflected in the sharp decline of shares on Wall Street, with both the Dow Jones industrial average and the S&P 500 experiencing notable decreases. European markets also saw a dip in share prices, with the FTSE 100 in London, Germany’s Dax, and France’s CAC all falling on Monday.

The concern over a possible “Trumpcession” has heightened as global investors are left rattled by the president’s unpredictable actions. Trump’s decision to halt US tariffs on goods from Canada and Mexico for the second time in two months only added to the uncertainty. In a recent interview, Trump himself did not rule out the prospect of the US economy slipping into a recession, warning businesses and households to prepare for a period of transition and potential inflation.

Analysts have noted a trend of Trump prioritizing political goals over economic stability, a move that has had a negative impact on consumption and overall confidence. As a result, Wall Street economists have revised their growth forecasts, emphasizing the detrimental effects of Trump’s trade wars on the US economy.

Goldman Sachs recently increased the likelihood of a US recession from 15% to 20%, attributing this change to higher tariffs, inflation, and reduced GDP and employment figures. Similarly, Morgan Stanley adjusted its 2025 GDP growth forecast downwards, citing the severity of policies like tariffs exceeding their initial expectations.

While some economists believe the US may avoid a technical recession as defined by two consecutive quarters of economic decline, the mounting risks suggest otherwise. Recent data has shown a decline in consumer spending, a record-breaking trade deficit, and a significant drop in consumer confidence, painting a worrying picture for the economic outlook.

Despite the challenges and uncertainties ahead, experts remain cautiously optimistic about the resilience of the US economy. However, the ongoing volatility and unpredictability stemming from Trump’s tariff policies continue to cast a shadow of doubt over the nation’s financial future.