Is the U.S. Heading for a Depression?

Is it just a recession looming in America, or is it something much worse?

As of April 2025, the U.S. economy is showing clear signs of distress. Recession forecasts have surged, market confidence is evaporating, and economic experts are once again invoking the specter of the Great Depression. It’s not hyperbole. With Donald Trump back in office and wielding economic policy like a cudgel, the threat of a prolonged, system-shaking collapse is no longer confined to history books.

At the heart of the crisis lies Trump’s erratic trade policy. His decision to reimpose massive tariffs on Chinese goods in March 2025—what he called “Liberation Day”—sent shockwaves through the global economy. The 125% tariff rate triggered immediate retaliation from China, disrupting U.S. exports and inflating consumer prices at home. The consequences were swift: manufacturing orders dried up, shipping costs surged, and farmers faced canceled contracts across Asia.