Trump bets 'beautiful' tariffs will boost US economy amid global recession fears

President Donald Trump brushed off fears of a global recession stemming from his recently announced retaliatory tariffs, saying that his new trade policy will only make the US stronger and will eventually "supercharge our economy," calling it a "big, beautiful deal."

Taking to his social media platform Truth Social, Trump on Friday said: "Big business is not worried about the Tariffs, because they know they are here to stay, but they are focused on the BIG, BEAUTIFUL DEAL, which will SUPERCHARGE our Economy. Very important. Going on right now!!!"

Even as Trump's trade policies led to a bloodbath and panic not only in US but global markets across Europe and Asia, a defiant Trump told his followers on Truth Social that it "is a great time to get rich." In fact, USD 5 trillion in market value was wiped out from the S&P 500 in just two days, following Trump's unveiling of new tariff slabs.

Trump's tariff war with the US's largest trading partners - China, Canada and Mexico - has sent Wall Street into a tizzy with top investing and brokerage firms like JP Morgan, S&P Global and Goldman Sachs, increasing the odds of a global recession.

While JP Morgan increased the chances of a global recession from 40 per cent to 60 per cent, Goldman Sachs increased the probability of a recession from 20 per cent to 35 per cent.

Last week, Trump unveiled different tariff slabs for different countries. While many countries like India reduced their tariffs on US imports considerably, countries like China slapped retaliatory tariffs, further spooking investors across the world, which was reflected on global markets soon after.

Many economists around the world fear that Trump's recent trade policies might follow the same trajectory as the 1930 Smoot-Hawley Tariff Act. The infamous protectionary trade measure passed by then-US President Herbert Hoover was the precursor to the worst recession witnessed in the last century.