NEW YORK () – According to a report from JPMorgan, the total tariffs imposed by U.S. President Donald Trump equate to approximately a 22% hike, making it one of the largest tax increases in the United States since 1968.
The financial institution has increased its likelihood of a worldwide economic downturn to 60%, up from the previous estimate of 40%. It also warned that the effect of these tariffs might be amplified due to counteractions, disturbances within supply chains, and a shift in market confidence.
The warning states that "continual strict trade measures and decreased migration might lead to enduring supply issues, which could diminish U.S. economic growth in the long term."
JPMorgan also notes that these policy measures might develop further over the next several weeks, stating that "both the U.S. and global economic growths appear robust enough to handle a moderate-sized disruption."
(Reported by Stephen Culp; Edited by Sandra Maler)