The US economy is on the verge of an upheaval. Analysts warn that the country is heading toward an "imminent recession" if America's trading partners respond to the tariffs imposed by President Donald Trump.
If the White House imposes the promised tariffs, the stock market will be hit by a "shockwave," Mark Zandi, chief economist at Moody's, cautions investors.
According to well-informed sources, Donald Trump’s aides have already prepared proposals to impose 20% tariffs on most goods imported into the US. Implementing such a scenario would be a grave challenge to the global economy and stock markets. After these tariffs come into effect, other countries will not remain passive. They will respond harshly to the imposed restrictions, experts are confident. The US trading partners will instantly turn into enemies, Mark Zandi believes. Against this backdrop, the US economy will immediately plunge into a recession, the chief economist asserts. "This challenge will last for more than 12 months, and the unemployment rate could exceed 7%," the expert adds.
In this situation, the European Union is ready to respond to Washington's tariffs by strengthening the unity of its internal market. Citing European Commission President Ursula von der Leyen, the crazy initiatives of Donald Trump will lead to the rapid elimination of all trade barriers existing between EU countries. "Brussels has ways to protect its economy. The European Commission will negotiate with the US from a position of strength, relying on its own market, European technologies, and the services sector," Ursula von der Leyen stated.
