Newsweek recently published an article featuring Mark Williams, Master Lecturer of Finance, discussing how Vice President JD Vance did not rule out the possibility of a recession, which economists attribute to President Trump’s economic policies including tariffs that have caused greater stock market volatility.
Recent tariffs on Canada, Mexico, and China have created uncertainty, leading to the worst stock market performance in 2025, with the S&P 500 down 2.7%, the Dow Jones dropping 2.08%, and the Nasdaq falling 4%, suggesting an increasing risk of an economic downturn.
“Trump’s reckless economic policies of inflationary tariffs could rapidly tip the U.S. economy into recession. Higher prices for raw and finished produces have reduced demand and pushed estimated GDP growth into negative territory. Recently the Atlanta Fed slashed its 2025 Q1 GDP forecast from growth to contraction. Based on the rate of economic deterioration, if Trump fails to soften his policy stance, the US could experience a full recession by June 2025,” Williams adds.
However, President Trump and Commerce Secretary Harry Lutnick remain optimistic, predicting strong future growth.
