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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.
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Business Matters broke the news in on Tuesday, May 6, 2025.
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