New Delhi:
JP Morgan has predicted that the United States’ economy is likely to recession this year, roughly due to the impact of the new tariff declared by President Donald Trump.
Investors released on Friday evening, in a note, the firm’s chief American economist, Michael Feroli said that the country’s GDP (GDP) is expected to contract “under the weight of the tariff”.
According to a report by the news website The Hill, Feroli said that the recession has also been predicted to push the unemployment rate to 5.3. [percent],
Shortly after the announcement by President Trump, the sad approach appeared, on 2 April, a mutual tariff was implemented on several countries. The move is part of his administration’s effort to unbalance trading relations with the major American business partners of the administration.
Jerome Powell, president of the Federal Reserve, also expressed concern about the possible impact of these new tariffs.
Speaking at a business journalism conference on Friday, Powell said that the new tariff would cause more losses and possible economic damage than expected. He said that this development could make the efforts of the Federal Reserve controlled inflation more difficult.
“While uncertainty remains high, it is now clear that the tariff growth will be much larger than expected. The same economic effects are likely to be true, including high inflation and slow growth,” Powell said.
According to President Trump’s tariff scheme, 10 percent tariffs will be implemented for imports from all countries starting from April 5. In addition, from April 9, countries with the largest trade deficit countries with the US will have to face high, personal tariffs. India is one of the affected countries, which have 26 percent tariffs on all exports.
Despite this, the global brokerage firm Jeffers introduced a more positive attitude about the impact on India. The firm said that major Indian export sector-like information technology (IT) services, pharmaceuticals and automobiles are not directly affected by a new tariff.
Jeffers described 26 percent tariff as “appropriate” than tariffs on other countries.
However, the firm also warned that the broad economic slowdown in the US can still harm Indian exports, especially in areas such as IT services.
“27 percent (now corrected up to 26 percent in a document) The tariff on India seems appropriate from a relative point of view. Major concerns are on weak American economic approach, which is a -VE for IT services and other exporters. However, it warns that a weak American economy can damage demand for Indian exports, especially in IT services,” in IT services.
(Except for the headline, the story has not been edited by NDTV employees and is published by a syndicated feed.)