WSJ Board: Trump’s Tariffs Will Spark A Recession

From the Wall Street Journal editorial board:

Recession fears are roiling markets, as tech stocks and the Dow Jones Industrial Average fell sharply again on Monday. Stock prices have been richly valued for some time, and this may be merely a market correction. But there are also signs of a slowing economy that should have the Trump Administration on alert.

Mr. Trump didn’t help the mood with his cagey response to a question by Fox News host Maria Bartiromo in a Sunday interview about whether he expects a recession this year. “I hate to predict things like that,” he replied. “There is a period of transition, because what we’re doing is very big.”

Mr. Trump’s deregulation and an extension of the 2017 tax reform should buoy business investment over the long term. But the higher costs and uncertainty caused by his tariffs are hurting the economy now. If Mr. Trump wants to quiet recession alarm, he would be wise to put his tariff plans on the shelf.

Read the full editorial.