Wake Up, The US Recession is Already Here
- The US economy contracted by 0.3% in Q1 2025, marking its first decline in over two years and raising recession concerns.
- This downturn followed rapid tariff increases on Chinese goods and related trade disruptions, which triggered import surges and market uncertainty.
- Businesses stockpiled goods ahead of tariffs, causing record trade imbalances and unsettled markets, while industrial construction spending fell sharply.
- JP Morgan assigns a 60% probability of recession, and the 90-day tariff implementation delay maintains high levies, including a 145% charge on Chinese goods.
- This situation suggests a secular economic slowdown worsened by protectionism, with independent analyses indicating avoiding recession is no longer possible.
11 Articles
11 Articles
Wake Up, The US Recession is Already Here
Key Points The U.S. GDP unexpectedly declined by 0.3% in the latest quarter versus expectations for 0.3% growth, meeting the textbook definition of a recession if another negative quarter follows. A mild recession is possible if the next quarter contracts slightly again, though trade tensions and tariffs, particularly with China, remain key risks that could deepen the downturn. Consumer sentiment indicators are notably weak, and investor atte…
Charted: America's GDP Decline in Q1 2025
See this visualization first on the Voronoi app. Use This Visualization Charted: America’s GDP Decline in Q1 2025 This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources. The U.S. economy is starting to show signs of weakness as Q1 2025 real GDP declined amidst the ongoing trade disruptions from Trump’s tariffs and government spending …
Has the U.S. Already Gone Off the Fiscal Cliff?
(Rich Santomaro) - In political circles, the term “fiscal cliff” is often used as a rhetorical device—a warning of what might happen if Congress fails to act. But what if the United States isn’t standing near the edge of a cliff anymore, but has already gone over it—and just hasn't hit the ground yet?...
The Fire Hose of Chaos: Recession Time - Zeihan on Geopolitics
What do you get when you mix overly aggressive trade measures and a poor economic plan? Trump’s idea of a great start. Or, as I like to call it, a policy-induced recession. Here’s what’s happening.Cargo shipments from China have collapsed and shortages will begin in a month or so. Trump’s eager to dump $1 trillion into new deficit spending, raising capital costs. Those DOGE cuts failed to offset spending and have backfired. Customer confidence i…
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