On May 1st, American economists stated that the new US government has frequently threatened to impose tariffs on trading partners since taking office, causing market concerns and leading to economic contraction in the first quarter. The tariff policies adopted by the US government may trigger a recession in the US economy. Tara Sinclair, an economics professor at George Washington University in the United States, pointed out that the significant policy changes made by the new US government in recent months have directly weakened the US economy. Michael Fratantony, Chief Economist of the American Mortgage Bankers Association, believes in a report that the negative impact of the US government’s tariff policies will put the Federal Reserve in a difficult position in maintaining prices and achieving sustainable employment in the United States. Gary Hufbauer, a senior fellow at the Peterson Institute for International Economics and former US Treasury official, said that US tariff policies are bringing huge uncertainty to business decision-makers, who are not only concerned about their own supply chains and customers, but also about the impact in other areas. This has led to delayed investment decisions by businesses and a sharp decline in consumer confidence, causing American consumers to postpone purchasing large items. He believes that the US economy may enter a recession in the second half of this year. (CCTV News)
Scan code to share