Economists Warn US on Brink of Recession Amid Tariff Uncertainty

Leading economists and market analysts are warning that the United States faces a heightened risk of recession due to the uncertainty and volatility created by President Donald Trump’s tariff policies. Paul Krugman argues that the unpredictability of these tariffs is undermining business and consumer confidence, while Fox Business commentators point to declining market stability and business investment as companies brace for ongoing trade tensions, especially with China. Corporate leaders and analysts note that many companies are unable to provide reliable earnings forecasts, with some offering dual outlooks depending on future tariff scenarios or abandoning guidance altogether. The S&P 500 is now projected to enter an earnings recession, with Deutsche Bank and LPL Financial both slashing their earnings expectations, citing the fallout from tariffs and a potential backlash against U.S. exports. Analysts emphasize that while some companies are finding ways to adapt, the overall economic climate remains deeply uncertain as long as trade policies remain in flux. The consensus among experts is that unless there is a credible shift away from unpredictable tariffs, economic growth and market stability will continue to be threatened.