As the impact of President Donald Trump’s across-the-board tariffs on almost all U.S. trading partners starts to emerge, economists are starting to predict a dramatic economic slowdown this year.
Carl Weinberg, chief U.S. economist at High Frequency Economics, thinks the downturn has already begun. Weinberg sees the economy falling out of bed in the second quarter, which has just started, and now predicts the economy will contract at a negative 4.5% rate in the second quarter.
Weinberg expects further economic contraction in the final six months of the year. U.S. economic growth in the January-March quarter is expected to be down to about a 2% annual rate.
“The economy is headed for a sharp downturn. Layoffs will surge,” Weinberg said, calling the tariff plan “the Trump Job Destruction Order.”
Among economists, the impact of tariffs is well known: Prices will jump and spending will decline. Ultimately, the tariffs are a tax that will be paid out of household incomes and corporate profits. The Trump tariff plan “is the largest one-day tax hike in history,” Weinberg said.
Carl Weinberg, chief U.S. economist at High Frequency Economics, thinks the downturn has already begun. Weinberg sees the economy falling out of bed in the second quarter, which has just started, and now predicts the economy will contract at a negative 4.5% rate in the second quarter.
Weinberg expects further economic contraction in the final six months of the year. U.S. economic growth in the January-March quarter is expected to be down to about a 2% annual rate.
“The economy is headed for a sharp downturn. Layoffs will surge,” Weinberg said, calling the tariff plan “the Trump Job Destruction Order.”
Among economists, the impact of tariffs is well known: Prices will jump and spending will decline. Ultimately, the tariffs are a tax that will be paid out of household incomes and corporate profits. The Trump tariff plan “is the largest one-day tax hike in history,” Weinberg said.
