Brace for recession, but don’t be overly pessimistic, economists advise

Free Malaysia Today

Two economists believe the Trump tariffs will have a deep impact on the global economy but a third says other factors will have to come into play to push it to the brink.  Read More: https://www.freemalaysiatoday.com/category/nation/2025/04/09/brace-for-recession-but-dont-be-overly-pessimistic-economists-advise/  Free Malaysia Today is an independent, bi-lingual news portal with a focus on Malaysian current affairs.    Subscribe to our channel - http://bit.ly/2Qo08ry   ------------------------------------------------------------------------------------------------------------------------------------------------------ Check us out at https://www.freemalaysiatoday.com Follow FMT on Facebook: https://bit.ly/49JJoo5 Follow FMT on Dailymotion: https://bit.ly/2WGITHM Follow FMT on X: https://bit.ly/48zARSW  Follow FMT on Instagram: https://bit.ly/48Cq76h Follow FMT on TikTok : https://bit.ly/3uKuQFp Follow FMT Berita on TikTok: https://bit.ly/48vpnQG  Follow FMT Telegram - https://bit.ly/42VyzMX Follow FMT LinkedIn - https://bit.ly/42YytEb Follow FMT Lifestyle on Instagram: https://bit.ly/42WrsUj Follow FMT on WhatsApp: https://bit.ly/49GMbxW  ------------------------------------------------------------------------------------------------------------------------------------------------------ Download FMT News App: Google Play – http://bit.ly/2YSuV46 App Store – https://apple.co/2HNH7gZ Huawei AppGallery - https://bit.ly/2D2OpNP  #FMTBusiness #DonaldTrump #Tariffs #Recession

Transcript

00:00The possibility of a recession following the imposition of new tariffs by the U.S. cannot be ruled out, but its severity will depend on several factors.

00:10TKS Yugenjian of Beit Alamana and Nazaret Ismail of University Malaya rate the risk of such an outcome at the global level as very high.

00:19But Nazaret's colleague, Golim Thai, believes it will come to pass only if tensions build up.

00:24Yugenjian said the tariffs would raise costs for the average American, leading to decreased disposable income and a drop in consumer and business confidence.

00:34He warned this would trigger a recession in the U.S. that would eventually spread across the globe.

00:39Yugenjian said even emerging economic powers like China and India would not be able to fully offset the impact of a U.S. recession,

00:47as the U.S. remains the dominant financial hub and the dollar continues to be the leading reserve currency.

00:53Meanwhile, Nazaret said that in addition to the tariffs raising costs and reducing consumer spending,

00:58the U.S. trade deficit, the dollar's reserve status, and a debt-driven financial system would also contribute to the risk of a recession.

01:06However, Golim said that while a global recession was possible, it would depend on several factors,

01:11including supply chain disruptions from a broader trade war.

01:14He said such a disruption might be possible if the affected countries responded to the new tariffs with retaliatory measures,

01:21which would disrupt trade, raise costs, weaken confidence, and increase their risk of a global recession.

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