Billionaires And Economists Form Consensus On Recession Hitting America From Tariff Shocks: 10 Things To Know
As President Donald Trump doubles down on his aggressive tariff policies, a growing chorus of economists and business leaders—including JPMorgan Chase CEO Jamie Dimon—are warning that a recession is no longer a distant risk, but a likely outcome. Although he out a 90 pause on most countries, with only a 10 percent tariff still in place, most are still concerned about the economy. He had upped the tariffs on Chinese goods to 145 percent to which China responded with a 125 percent tariff on American goods and a halt to Hollywood movies being shown in the country.
10 things to know.
1. Jamie Dimon Sounds The Alarm
Speaking on Fox Business, Dimon said he believes a recession is “probably a likely outcome” of the current tariff war, noting that both macroeconomic and company-level uncertainty are shaking up the markets, Axios reported. JPMorgan now predicts a 0.3 percent contraction in U.S. GDP for 2025, calling for a mild recession after a strong prior year. The firm has also increased its recession odds to 60 percent, up from 40 percent, Reuters reported.
2. Markets Reacted Sharply
Stocks plunged and bond yields surged amid the intensifying trade war between the U.S. and China. Dow futures dropped over 800 points after China slapped an 84 percent tariff on U.S. goods, further escalating tensions. The tariffs between the U.S. and China have since gone up, CNBC reported.
3. Billionaires Warn Trump’s Tariffs Could Spark ‘Economic Nuclear War’
BlackRock CEO Larry Fink echoed Dimon’s concerns earlier this week, saying most CEOs already believe the U.S. is in a recession. Prominent billionaires are voicing strong opposition to Trump’s sweeping tariffs. Elon Musk also criticized the policy, advocating for a “zero-tariff situation” with Europe, ABC News reported.
4. Corporate Belt-Tightening Begins
Dimon noted that business leaders have began cutting spending in anticipation of tougher economic conditions and rising defaults, CNBC reported.
5. Ackman Joins Critics
Billionaire investor Bill Ackman, once a Trump supporter, blasted the new tariffs as “economic nuclear war,” warning they could permanently damage U.S. global competitiveness, CNN reported.
6. BlackRock CEO Larry Fink: U.S. May Already Be In Recession
BlackRock CEO Larry Fink warned that the U.S. stock market could fall another 20 percent amid economic uncertainty and rising tariffs under President Trump, Fox Business reported. Speaking at the Economic Club of New York on April 11, Fink said many CEOs he speaks with believe the U.S. is already in a recession. He pointed to tariffs driving up costs and worsening inflation as contributing factors.
7. Treasury Pushes Back
Treasury Secretary Scott Bessent tried to reassure markets, claiming the economy remains in “pretty good shape,” though analysts are skeptical.
8. Global Fallout
Japan, once a key ally to the U.S., welcomed Trump’s 90-day tariff pause but urged a full review of duties on cars and steel. The move boosted Asian markets temporarily.
9. Liberation Day Market Fallout
Since Trump’s controversial “Liberation Day” event, which promised sweeping tariffs, two-thirds of the S&P 500’s recent 15 percent decline has occurred, CNN reported.
10. Trump Warned Of A Market Crash Under Harris — But His Tariffs May Be Causing One Instead
Trump warned that a Kamala Harris presidency would crash the stock market, but under his own leadership and tariff policy, markets are plunging, CNN reported. Since Inauguration Day, the S&P 500 has dropped 15 percent, with much of the decline occurring after Trump’s “Liberation Day” tariff announcement. Experts warn that a bear market and recession may be imminent, with comparisons drawn to 1987, 2008, and the 2020 covid crash.