Economic forecasts turned grim after former President Donald Trump announced his “Liberation Day” tariffs on April 2nd. Stock markets tumbled, and experts warned of an impending recession within the year. However, three months later, the outlook appears calmer. Retail prices have not risen significantly, unemployment remains stable, and the S&P 500 index has rebounded to record levels. The temporary suspension of many of Trump’s tariffs, initially announced a week after Liberation Day to ease market concerns, is set to expire on July 9th. Although Trump has hinted at restarting trade negotiations and reimposing tariffs, market participants seem largely unfazed.
— news from The Economist
— News Original —
How America’s economy is dodging disaster
Economic doom beckoned after President Donald Trump announced his “Liberation Day” tariffs on April 2nd. Stocks crashed; forecasters predicted a recession within the year. Three months on, the mood is rather more relaxed. Prices in shops are not noticeably higher, unemployment is flat and the S&P 500 index is resurgent, back at all-time highs. Mr Trump’s 90-day pause for many of his tariffs, announced a week after Liberation Day to calm markets, will end on July 9th. Although he has threatened to send letters declaring talks over and tariffs back on, nobody seems too worried.