Trump tariffs increase risk of recession, US stock market loses more than two trillion dollars

New Delhi| US President Donald Trump on Thursday announced the imposition of tariffs on various countries. However, at present America is suffering the most loss due to these tariffs. Experts are fearing that due to these tariffs the American economy may fall into recession. After the announcement of tariffs, the US stock market suffered a loss of more than two trillion dollars in a single day.

Consumers can cut expenses due to increase in prices of goods
Almost every sector in the American financial market has suffered losses and this loss is so huge that almost five years after the Corona epidemic, American companies have suffered losses of trillions of dollars in a day. Banks, retailers, clothing, airlines and technology companies have been most affected by this loss. It is believed that due to tariffs, the prices of goods and services will increase in the American market, due to which consumers will cut their expenses.

Along with America, the global economy will also be affected
Many economists have described tariffs as worse than expected. After the implementation of the tariff, a large number of investors sold shares of those companies, which are feared to be most affected after the implementation of the tariff. Economists believe that tariffs will impact consumers the most and if consumers cut their spending, companies will produce less goods and this could either halt or shrink economic growth. It is noteworthy that 70 percent of economic activity in the US comes from consumer spending. Olu Sonola, head of US economy research at Fitch Ratings, says this will affect not only the US economy but also the global economy.

Know which sectors were affected by the tariff plan
Airlines
It is believed that due to the cost of goods, American people will cut their expenses and due to this they may cut down on air travel. This was the reason why there was a huge fall in the shares of American airlines in the American stock market on Thursday.

Clothing and footwear
Most clothing and shoe brands in America produce outside the country. In such a situation, now they will have to pay heavy tariffs in America. Due to this, clothes and shoes will become expensive and their sales are sure to be affected. This was the reason why shares of companies like Nike, Ralph Lauren etc. also fell drastically.

Retail companies
Online retail companies in the U.S. import the bulk of their inventory from overseas. This was the reason why shares of retail companies like Amazon, Best Buy, Dollar Tree fell by double digits on Thursday.

Technology Sector
Technology companies selling computers, smartphones and laptops also make most of their products outside the US. In such a situation, they will also have to pay tariff on their products. This was the reason why shares of companies like Apple, HP, Dell, Nvidia declined. Apart from these, shares of banks, restaurants and car manufacturing companies have also declined.