AP: Fear that Trump tariffs will spark recession wipes out more than $2 trillion in value from US stocks

John: President Donald Trump has repeatedly slapped sweeping tariffs on foreign imports. Nearly every time, the stock market reacted with major losses, including the biggest one-day drop since the pandemic flattened the global economy.

Many economists have said these tariffs are much worse than expected, and investors have dumped shares in companies they predict will suffer most from what is effectively a business tax. In many cases that tax will be passed on to consumers.

“This is a game changer, not only for the U.S. economy but for the global economy,” Olu Sonola, Fitch Ratings’ head of U.S. Economic Research, said in a report. “Many countries will likely end up in a recession.”

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