U.S. President Donald Trump speaks to members of the media as he departs for National Harbor to address the Conservative Political Action Conference (CPAC) annual meeting, on the South Lawn of the White House in Washington, D.C., U.S., February 22, 2025. REUTERS/Craig Hudson
The Wall Street Journal's conservative editorial board once again sounded the alarm that economic warning signs are flashing — but President Donald Trump isn't listening.
In a piece titled "Will There Be a Trump Recession?" the board warned Monday evening that "recession fears are roiling markets," though acknowledging the precipitous drop in the stock market could be "merely a market correction."
"But there are also signs of a slowing economy that should have the Trump Administration on alert," the board stressed.
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And his "cagey response" over the weekend to a Fox News host who asked if he expects a recession "didn't help the mood," the Journal added.
"“I hate to predict things like that,” he told Maria Bartiromo. “There is a period of transition, because what we’re doing is very big."
Asked again that day why he wouldn't rule out a recession, Trump waffled.
“I tell you what, of course you hesitate. Who knows?” Trump replied.
"His uncharacteristic equivocation rattled markets that maybe he doesn’t mind a 'little disturbance,' as he put it in his speech to Congress last week. After several turbulent weeks, stocks have erased their gains since Mr. Trump’s election and more," the board wrote.
The board praised Trump for ignoring the short-term groans from displeased investors, but warned he's not out of the woods.
"But there are flashing signs that the U.S. economy is slowing," the board stressed.
That includes an eye-opening jobs report Friday that employers only added 151,000 jobs — half that of November and December. labor participation rate fell 0.2 percentage points and transportation equipment manufacturers warned that customers have pumped the brakes on new orders amid "uncertainty" regarding tariffs. To boot, auto and credit card delinquencies are approaching levels from the Great Recession.
"All of which suggests slower growth ahead, even if the economy dodges recession. 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," the board concluded.
Trump has implemented and proposed several new tariffs as part of his trade policy. He upped tariffs on China from 10% to 20% on most imports, with plans for a 60% tariff. He also slapped a 25% tariff on most imports from Mexico and Canada, with a 10% tariff on Canadian energy exports.