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

John: President Donald Trump slapped sweeping tariffs on foreign imports this week and the stock market reacted with major losses as U.S. financial markets closed with their biggest one-day drop since the pandemic flattened the global economy five years ago.

Many economists called the tariffs much worse than expected, and investors 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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