25% China tariffs would spark a global recession: UBS's Michael Crook
If President Trump were to follow through on his latest threat to potentially raise tariffs on Chinese goods "well beyond 25 percent" it would lead to a global recession, according to Michael Crook, head of Americas investment strategy at UBS Global Wealth Management.
“It’s too early to be overly worried about it. We don’t expect to see a global recession unless we actually see an escalation of the trade war from here,” he told FOX Business’ Charles Payne on “Making Money with Charles Payne.”
Last week, Trump announced the U.S. would impose an additional 10 percent tariff on $300 billion worth of Chinese goods, which is scheduled to take effect in September.
“One possibility is that we actually come back to a bit of a cease fire and we have a few weeks before we see if that will happen. Our expectation is that it doesn’t happen, that we actually see the 10 percent tariffs. We don’t think that would cause a recession, but 25 percent tariffs -- that would cause a recession,” Crook said.