U.S. Tariffs Trigger Recession Fears

The new U.S. tariffs are making people worry that a big world recession might happen soon. President Donald Trump said there will be a 10% tax on everything the U.S. buys from other countries and a huge 145% tax on goods from China. This move meant to protect American businesses but has made financial markets around the world very nervous. Stock markets dropped fast with the S&P 500 going down by 2.6% and the Nasdaq falling by 11% this year.

Experts warn that these taxes could hurt global trade and make problems with getting goods even worse. A survey from Reuters shows that more than 60% of experts now think there is a “high” or “very high” chance of a world recession in 2025. Predictions for world economic growth have already been lowered from 3.0% to 2.7%. Many businesses from factories to stores are getting ready to pay more money for goods and to have fewer customers.

Countries that sell a lot of goods to others may lose a lot of money soon. Investors are getting scared and are putting their money into safer things like gold and government bonds. Small businesses especially those that buy things from other countries might suffer the most. Big partners like China and Europe have warned they might fight back with their own taxes which could make things even worse.
Farmers are already selling fewer crops and getting lower prices.

World leaders are asking for talks to stop the problem from growing bigger. Meanwhile, American shoppers might soon have to pay more for things like clothes, phones and electronics. Some people believe tariffs will help American businesses in the future but for now it looks like they are causing more harm than good.

If no deal is made this fight could lead to a long time of economic problems. Everyone is hoping for a peaceful solution before it gets out of control. Governments and businesses are already making backup plans in case the recession really happens.