Economic experts are sounding alarms as US tariff policies fuel market instability. The tech-heavy Nasdaq has tumbled over 20% from its recent high, marking a bear market that has investors on edge worldwide.
In just two days, a staggering $47 trillion was wiped off the broader market’s value. The "Big Seven" tech giants, including Apple, Microsoft and Amazon, collectively shed an estimated $13 trillion in market capitalization, sending ripples throughout global financial circles.
Adding to the concern, JPMorgan has revised its forecast and now predicts that the US could spiral into a recession by 2025. The tightening of monetary policy, characterized by successive interest rate hikes, is expected to slow economic growth considerably.
Critics of the current US tariff policies argue they lack economic foundation, with Peter Boehringer of the Peterson Institute for International Economics describing the tariff calculations as "completely fabricated." Dean Baker from the Center for Economic and Policy Research warned that these tariffs, the largest trade escalation in recent years, might stifle growth, raise inflation and provoke retaliatory measures from trade partners.
Researcher Clay Ramsey from the University of Maryland's Center for International and Security Studies emphasized that while these tariffs may seem to offer short-term negotiation advantages, they are likely to impose significant long-term costs on US consumers and businesses, especially affecting middle- and lower-income groups.
Amid growing global economic risks, experts urge policymakers to adopt more rational and sustainable economic strategies to address inflation, trade relations and overall growth. The coming months are critical as the nation faces uncertain economic prospects that could have lasting impacts across multiple sectors.
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Economic experts warn of serious risks from US tariff policies
cgtn.com
