The Finance 202: Trump could spark a global recession if he imposes more China tariffs, economists predict
By Tory Newmyer
December 4 at 7:53 AM
President Trump risks tipping the United States — and the world — into recession if he presses ahead with tariffs on Chinese imports set to bite in just 11 days.
That’s the conclusion some economists are drawing after the president renewed trade tensions with Beijing by saying he was open to waiting until after the 2020 election to reach a deal some advisers recently described as imminent.
“The economy is on the precipice and this would just push us over into the abyss. I don’t think we’re very far from recession as it is,” Moody’s Analytics chief economist Mark Zandi tells me.
Zandi sees a cascade effect ricocheting through the economy if the administration follows through on its threat to impose 15 percent import levies on $160 billion of Chinese goods, a list that includes laptops, cellphones, toys and other consumer goods. “It would just be too much,” he said of the tariffs planned for December 15. “It would undermine investor confidence, weaken business sentiment and the negative reinforcing dynamics of a recession would take hold.”
more:
http://www.washingtonpost.com/news/powerpost/paloma/the-finance-202/2019/12/04/the-finance-202-trump-could-spark-a-global-recession-if-he-imposes-more-china-tariffs-economists-predict/5de6e17688e0fa652bbbdbac/
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