Stocks have approached bear market levels as President Donald Trump’s new tariffs have sparked concerns of a recession.
Stock markets have entered a steady decline, with the S&P 500 flirting with a bear market after a steep slump following President Donald Trump’s newly announced tariff policies.
As recession fears grow, economists and analysts are weighing whether the nosedive will ignite turmoil—or if it is merely another market cycle.Why It Matters
If stocks enter a bear market, experts warn that deeper economic problems could follow, including increased recession risks as investors could remain on the sidelines. While some experts warn that deeper trouble may follow, others caution that stock declines don’t always spell a recession.
Trump entered office promising to make significant economic gains, but as his tariffs take hold and the markets remain volatile, he could face political headwinds as polling on the issue dips. His tariff policies have already faced pushback from member of his own party in both the House and the Senate.
What To Know
Foreign governments have reacted to Trump’s sweeping tariffs, announced last week. New levies include a 10 percent tariff on all imports and as much as 50 percent on nations with a trade deficit with the United States.
Markets dipped as retaliatory tariffs were introduced by China. Trump has already responded to those retaliatory tariffs, announcing more measures.
