Tariffs turmoil risks a global recession, Trump is warned

Share prices plunged across the world yesterday as Donald Trump doubled down on trade tariffs despite warnings from economists of the growing risk of a recession in the United States and around the globe.

- KATE DEVLIN

The president dismissed market turmoil over his plans – saying “sometimes you have to take medicine to fix something” – and threatened to raise import fees even further against China unless Beijing dropped its retaliatory measures.

But banking giant Goldman Sachs and JP Morgan, the US’s largest investment bank, warned the escalating trade war risked tipping the US and other countries into recession.

Britain’s FTSE 100 index dived to a one-year low after Hong Kong's Hang Seng index fell more than 13 per cent, and there was similar turmoil on Wall Street.

Sir Keir Starmer pledged to “shelter British business from the storm” as he called for “cool heads” to prevail. Speaking at a Jaguar Land Rover plant in the West Midlands, the prime minister said: “These are challenging times, but we have chosen to come here because we are going to back you to the hilt.” Land Rover boss Adrian Mardell said his company faced “a significant threat” from the US tariffs.

Jamie Dimon, chief executive of JPMorgan Chase, one of the most prominent figures in corporate America, warned of rising inflation and the risk of recession.