President Trump's tariffs and their fallout will cause the U.S. economy to enter a recession this year, J.P. Morgan predicts.

JPMorgan warned of an increased recession risk due to President Donald Trump's tariff policies, while Peter Schiff thinks the U.S. has been in recession for a while.

JPMorgan on Friday updated its U.S. economic outlook and now sees the country slipping into a recession in 2025 after factoring in President Donald Trump's sweeping reciprocal tariffs. The imposition of the steepest American trade barriers in over a century has hammered sentiment across the globe.

In every corner of the financial markets, from stocks to bonds to commodities, investors sent Donald Trump the same unmistakable message: The trade war he unleashed is threatening to set off a worldwide recession — and fast.

"We thus emphasize that these policies, if sustained, would likely push the US and possibly global economy into recession this year. An update of our probability scenario tree makes this point, raising the risk of a recession this year to 60%,

The saying goes that when America sneezes the rest of the world catches a cold — pithy shorthand to describe how changes in the world’s biggest economy ripple out to impact everyone else.