US Economy Facing Sharp Slowdown as Trade Tensions Rise

The US economy, once considered unstoppable, is now teetering on the brink of a significant slowdown. Rising trade tensions and declining consumer confidence are putting a strain on this vital engine of global growth. While some economists view it as just a temporary dip, analysts warn that this may be more than a temporary setback. forecasts are increasingly pointing toward a recession within the next year. 45% of experts predict a recession by year’s end, up from 30% previously. The expected economic growth for 2025 and 2026 has been significantly lowered, with only a modest 1.4% projected for 2025 and 1.5% the following year. 1.4%. These projections far below the anticipated growth levels. The primary culprit is a trade war fueled by massive tariffs against China, a major partner that has recently become an economic rival. As households, the backbone of the US economy, begin to tighten their belts, consumption – a vital driver of GDP – is slowing, foreshadowing a less dynamic period ahead. Further compounding these pressures are concerns about overall confidence. Businesses face uncertainty about fiscal policies and rising costs, which leads them to delay investment plans. Even the typically robust American consumer is starting to be more cautious. 23% in tariffs have been imposed on imports from China, prompting a temporary surge in demand. But this artificially inflated growth hides a deeper trend: exports are steadily declining due to retaliatory measures by countries like Asia and beyond. The IMF, increasingly concerned about these protectionist policies, has lowered its global growth forecasts. It is believed that the impact of these policies could trigger a domino effect across the globe. The Bureau of Economic Analysis is expected to release crucial GDP figures soon. Unless a diplomatic breakthrough occurs or a significant domestic recovery takes hold, this trend appears unlikely to reverse. In conclusion, what was once perceived as a quiet crisis has now become a visible reality. The US economy, a key driver of global dynamism, is currently experiencing a sharper slowdown than anticipated. Meanwhile, China is capitalizing on the current global instability by leveraging gold and cryptocurrencies, which are weakening the dollar’s influence. The cards are in the hands of policymakers, but time is running out, and market patience may be nearing its limit.