In a recent note, RSM chief economist Joseph Brusuelas has warned of a potential tariff-induced recession, which could begin on the coast, leading to increased inflation and unemployment.
What Happened: Brusuelas expressed concern that inconsistent tariff policies could set off a recession, originating from the Los Angeles docks. About 22% of U.S. jobs are tied to transportation, warehousing, and trade, making import container volumes at Los Angeles and Long Beach ports a key indicator of economic activity and growth, as Brusuelas explained in a detailed note at RSM Real Economy.
He characterized President Donald Trump‘s tariff decision as a “misapplied consumption tax” that could prematurely halt economic expansion. Brusuelas predicts that the impacts of these policies will initially be felt at the ports, before permeating the rest of the economy. He foresees a decline …