Tariffs threaten U.S. economy as Intel warns of recession risks

On April 25, 2025, in the United States, major tech companies reported their first-quarter results, which had a positive impact on the stock market. The Dow Jones Industrial Average regained the 40,000 level, while both the S&P 500 and Nasdaq saw gains exceeding 2%. Despite these gains, concerns over ongoing trade tensions remain a significant backdrop. Intel's CFO, David Zinsner, expressed that the tariffs imposed by President Donald Trump's administration, along with potential retaliatory measures from other nations, have escalated the risk of a recession. Meanwhile, optimism regarding a possible de-escalation of trade tensions between the U.S. and China has been dampened by China's announcement of no current trade discussions with the U.S. President Trump refuted those claims, asserting that discussions were indeed taking place but withheld specific details. Additionally, South Korea has called for calm and orderly negotiations on trade issues. Their aim is to finalize a deal by July to avoid tariffs which could have a detrimental effect on its economy. As markets in Asia experienced increases, it is evident that while tech is showing strength for now, the looming uncertainties surrounding tariffs add an unpredictable element to the economic landscape. Traders and consumers alike are feeling the effects of these tariffs, with some businesses fearing significant financial strain. The current situation reflects a troubling dynamic where market performance diverges from fundamental economic concerns, suggesting that the tranquility observed at this moment may quickly fade.