DUBLIN - JPMorgan stated that Donald Trump's new tariff policies could potentially lead to a recession in the United States and globally. Disruptive US policies are considered the biggest risk to the global outlook throughout the year.

These tariff increases not only affect the US's trading partner countries but could also negatively impact the US economy. JPMorgan's chief economist, Bruce Kasman, explained in a research note on Thursday (3/4) that the probability scenario results indicate the risk of a recession this year has risen to 60% from 40%.

"We thus emphasize that these policies, if sustained, would likely push the US and possibly global economy into recession this year," Kasman added, as quoted by Newsweek.

Trump's tariffs were described as "the largest tax increase" by Michael Feroli, chief economist at JPMorgan, since the Revenue and Expenditure Control Act of 1968. The act  imposed a 10 percent surtax on individual and corporate income taxes in an effort to curb inflation and reduce the budget deficit during the Vietnam War.

The widely applied 'Liberation Day' tariffs affect various countries such as China, Japan, the European Union, as well as several Southeast Asian nations, including Indonesia. These tariff policies complement the tariffs previously imposed on the United States' major trading partners, namely Canada and Mexico. (LM)