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The US economy has rapidly shifted from optimism to recession fears in just 20 days. Despite recent all-time stock market highs and solid economic growth, market volatility has increased significantly following President Trump’s announcement of new tariffs, including a planned 50% tariff on Canadian steel and aluminum imports.
While economists note the actual risk of imminent recession remains low, uncertainty surrounding Trump’s economic policies—particularly his tariff plans—is creating what JPMorgan strategist David Kelly calls an “uncertainty tax” that’s making businesses hesitant to invest and consumers cautious about spending.
