Second, the U.S. stock market recovered remarkably quickly from the tariffs imposed during the first Trump administration. Specifically, while the S&P 500 declined 19.8% over a three-month period between September and December 2018, the index had already recouped its losses and reached a new high by May 2019.

His warning comes at a time when trade tensions, fueled by former US President Donald Trump’s tariff policies, are increasing, and the US stock market is struggling.