Donald Trump’s brinkmanship and stop-start approach to tariffs rattle investors

Summary

Economists warn that the risk of a U.S. recession is rising due to Trump’s unpredictable tariff policies.

Wall Street stocks fell sharply Monday, with the S&P 500 down 2.4%. Trump refused to rule out a recession, instead claiming it’s a “period of transition.”

Goldman Sachs raised recession odds from 15% to 20%, and Morgan Stanley cut its 2025 GDP forecast. Consumer confidence hit a four-year low, and the U.S. trade deficit widened to a record $131 billion.

Analysts say Trump’s tariff policy is fueling uncertainty and economic instability.