Is Your Business Recession Proof?
Financial experts warn of recession from trade wars
Building service contractors and residential cleaners may want to consider ways to “recession-proof” their businesses as financial experts are warning that the escalating trade war between the United States and China could lead to a financial downturn, Bloomberg reports.
Last month, U.S. tariffs on Chinese goods increased from 10% to 25% after a breakdown in talks between the two countries. U.S. President Donald Trump also is threatening to impose a 5% tariff on Mexican goods later this month in response to illegal immigration, The Washington Post reports.
Financial experts at Morgan Stanley warn that a global recession could start within nine months if the United States imposes 25% tariffs on an additional $300 billion of Chinese exports and China retaliates with its own tariffs on U.S. goods. JPMorgan Chase & Co. predicts the probability of a U.S. recession in the second half of this year has risen to 40% from 25% a month ago.
ISSA has called on the U.S. and Chinese governments to come to an agreement that ends the trade war, as its members—businesses in the cleaning industry—will bear the brunt of the burden from the tariffs. If continued, the tariffs could increase costs throughout the supply chain, making cleaning and sanitizing facilities such as hospitals, schools, and offices more expensive and thus compromising the ability of many facilities to maintain safe and sanitary conditions.