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Rising Recession Fears as Factories Slow and US-China Trade War Eases

Beijing, China
May 13, 2025 (Updated: February 11, 2026) 0 Negative I want money/finance advice
Rising Recession Fears as Factories Slow and US-China Trade War Eases

TheWkly Analysis

Economic warning signs are piling up across the US, with manufacturing showing a dip in new orders and a slowdown in hiring. While the recent tariff truce between Washington and Beijing has momentarily soothed trade tensions, experts worry about sluggish business investment and cautious consumer spending. Retailers report smaller inventories due to uncertain demand. Economists caution that a possible recession could trigger job losses and credit tightening, especially if production continues to stagnate. Still, lower tariffs may lower some import costs.

Multiple perspectives analyzed from 0 sources
What this means for you:
If you’re worried about job security, begin building or expanding an emergency fund that can cover a few months’ expenses.
Monitor interest rates—if they dip again, consider refinancing high-interest debts.
In the meantime, diversify your income streams or upskill to remain valuable in a slower hiring market.

Key Entities

  • Federal Reserve: The central bank of the United States. It adjusts interest rates and oversees monetary policy to maintain stable prices and employment.
  • Treasury Secretary Scott Bessent: A senior US official overseeing economic policy. He helped negotiate the partial tariff rollback with China.

Multi-Perspective Analysis

Left-Leaning View

The easing of the US-China trade war is a temporary reprieve that masks the underlying economic vulnerabilities and the need for progressive policies to support workers.

Centrist View

While the easing of trade tensions may provide some relief, the slowdown in factory output raises concerns about the overall health of the economy and the potential for a recession.

Right-Leaning View

The slowdown in factories highlights the fragility of our economy, and while the trade war's easing is a positive sign, we must remain vigilant against the risks of recession.

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