1. Trump's tariffs could lead the economy towards recession. 2. JPMorgan calls it the largest tax hike since 1968. 3. Effective tariff rates exceed 23%, the highest since WWI. 4. UBS predicts a technical recession and rising unemployment. 5. PCE inflation may reach 4%, double Fed's target.
Historically, significant tariffs lead to economic slowdowns, impacting corporate profits. Past trade wars have shown that increased tariffs create uncertainty that negatively affects stock markets, including the S&P 500.
The article discusses potential recession triggers from tariffs, directly impacting S&P profitability and investor sentiment.
The immediate implications of tariffs will likely affect market confidence soon, resulting in quick market reactions. Economic indicators are expected to showcase poor performance shortly after the tariffs are enacted.