Recession Still Looms Despite Trump’s Tariff Pause, Survey Finds
The comments below are an edited and abridged synopsis of an article by Paul Davidson, USA Today
President Donald Trump’s recent 90-day suspension of certain tariffs, intended to alleviate economic tensions, has done little to assuage concerns about a looming recession. While the pause offers temporary relief, it does not address the underlying issues affecting the US economy.
The abrupt implementation and subsequent reversal of tariffs have created significant uncertainty for businesses and investors. Companies are hesitant to make long-term investments amid unpredictable trade policies, leading to reduced capital expenditures and hiring. This uncertainty is further exacerbated by the ongoing trade tensions with China, where tariffs remain in place, affecting global supply chains and increasing costs for consumers
Consumer confidence has also been impacted, with many Americans expressing concerns about rising prices and economic instability. The University of Michigan reported a decline in consumer sentiment, indicating that households are wary of future economic conditions. This decline in confidence could lead to decreased consumer spending, which is a critical component of economic growth.
Economists warn that the combination of trade tensions, reduced business investment, and declining consumer confidence could push the US economy into a recession. The Federal Reserve faces challenges in responding to these developments, as adjusting interest rates may not be sufficient to counteract the negative effects of trade policies. In summary, while the tariff pause provides a brief respite, it does not resolve the fundamental issues threatening economic stability. Without a clear and consistent trade policy, the risk of a recession remains a significant concern for the US economy.
A Note From BMG
The Opportunity for Gold Despite Tariffs
The current economic climate, marked by inconsistent trade policies, declining consumer confidence, and weakened business investment, presents a powerful case for gold as a safe-haven asset. As markets react to President Trump’s 90-day tariff suspension—a move that offers only temporary relief without solving deeper economic issues—uncertainty continues to grow.
This environment of instability is fertile ground for gold. With fears of a looming recession, investors are increasingly drawn to gold’s historic role as a hedge against volatility, currency devaluation, and policy unpredictability. As confidence in traditional markets falters and recession risk mounts, gold offers a stable store of value, making it a compelling opportunity for portfolio protection and long-term wealth preservation.