Worries over Trump tariffs. Whether recession?

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Debates focused on American president Donald Trump's trade and tariff policy are rising internationally. There is several questions related to international trade and commerce have been arised as part of the debates.One of such question to be answered is whether US recession concern increasing under Trump's tade and tariff policies?.Without answering directly over such concern of recession Mr. Jerome Powell taped down worries over inflation expectations. However US economic data in this regard is divergent and have no consensus to answer the question related to concern of recession.such circumstances are fueling the current debates over whether rising anxiety from Trump's policies will push a moderating economy into a serious downturn.

Soft data and Hard data

Soft data (data of survey's of sentiment from households and business sections) and hard data (data like employment and manufacturing) also suggest fears of the inflation /recession.Comments and actions from different corners are notable in this regard.For instance US Federal Reserve lowered their forecast for annual growth recently. The OECD opined the US trade policy will slowdown economic activity across the world.Financial experts suggested the tariff will lead to higher prices and will make it challenging to determine the right strategic path ahead.

Steel and Aluminum industry

In order to protect the U.S. steel and aluminum industries from unfair trade practices and global excess capacity the U.S. government plans to  impose a 25% tariff on all steel and aluminum imports with effect from March 2025 onwards. This tariffs is also applicable to  previously exempt nations, including Argentina, Australia, Brazil, Canada, the EU, Japan, Mexico, South Korea, Ukraine, and the United Kingdom Imports of aluminum from Russia will be subject to a 200% tariff. Certain derivative products made from steel and aluminum will also be subject to the new tariffs.
Therefore the affected countries are closely monitoring the situation to ensure minimal disruption to their supply chain.

Canada and Mexico affected


Under new tariff policy effective from March 7, 2025, commodities covered under the USMCA agreement are exempt from the 25% tariffs on Canada and Mexico origin goods that took effect on March 4, 2025. For more information about the USMCA agreement, please visiti Additional  25% tariff will be applied on all goods of Canada and Mexico country of origin, effective from March 4, 2025. Energy resources (oil, natural gas and electricity) from Canada are subject to an additional 10% tariff. Above increased tariffs were originally scheduled to take effect on February 4, but were given a one month delay for negotiations.


China & Hong Kong affected

All products of China/Honkong origin imported into the United States will be charged and additional 10% tariff starting March 4, 2025.This increase will apply in addition to any existing tariffs (including those that took effect on February 4).