Richard Arnold: US Correspondent on the economic chaos as a result of Trump's continuing trade war

The US economy is in chaos as Donald Trump continues to push ahead with his tariff plan. 

The US President's confirmed Australia won't be exempt from new 25% tariffs on steel and aluminium imports, and has announced 50% tariffs on Canadian steel and aluminium imports. 

This is in response to Ontario's now-suspended 25% surcharge on electricity exports. 

US Correspondent Richard Arnold told Mike Hosking that investment giant Goldman Sachs says there is now a 1-in-5 chance of a recession in the US. 

Arnold says that while the average American is yet to feel this in full, they certainly will. 

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Episode Transcript

Speaker 1 (00:00):
My apologies, Rich a little bit late, but you can
you can wade us through the mess.

Speaker 2 (00:05):
Try to Mordi. Mike Boom to bust in twenty days
would be the headline if we wind back the clot
to when Trump was starting to take over. Wall Street
was sitting at all time high as wasn't it. The
US economy was growing into solid rape. Some called it
the endview of the world. Now, following its worst day
of the year of the DAR is continuing its downward
roller coaster ride, six hundred and twenty three points off

(00:25):
on the Dow last time I looked a moment ago.
Consumer sentiment also souring. People are beginning to use the
R word R for recession. Trump was asked about this,
Are you expecting a recession this year?

Speaker 3 (00:38):
I hate to predict things like that.

Speaker 2 (00:40):
Yeah, Gobin Sachs, the Investment Giant, says there is now
a one in five chance of a recession. Consumer confidence offers,
I say trump tariff war is sending out shock waves.
Trump now saying he will double tariff on steel and
aluminium brought in from Canada, this from twenty five to
fifty percent. Ontario's Premier Doug Ford has announced a twenty
five percent surcharge on lctricity as a result, power used

(01:02):
by some one and a half million residents of Michigan, Minnesota,
and New York. He is saying this about the situation.

Speaker 4 (01:09):
Consumer confidence is down, the market stumbling. You know, there's
going to be plants closed in the US Assembly. Plants
will shut down because they won't have the aluminum, or
they'll be paying twice three times as much. This is
absolute chaos created by one person.

Speaker 2 (01:26):
Yeah, he is calling for negotiation. So far, Trump is
pursuing the tear of tirade everyday. Americans yet to feel
this in full, but they certainly will. Delta Airlines now
delays to slash their profit outlook. The backlash against Musk
also is growing. The mega mega billionaire seems to be
floating the idea of cutting money from Social Security, this
country's retirement schime. The pension scheme says, mask.

Speaker 3 (01:47):
Most of the federal spendings and titlements. So that's like
the big one to eliminate Mike.

Speaker 2 (01:54):
Seventy one point six million people get these benefits, which
are wrongly called entitlements. This is Poul's money. We paid
for it to be kept in government hands. For uses,
retirement funds and political parties. Both sides spent a lot
of it and other stuff. They had no right to
do that, putting the fund in jeopardy again. It's not
their money.

Speaker 1 (02:12):
Good on you, mate, We'll see you Friday. I appreciate
it very much. Richard Arld state. So, by the way,
Trump is calling the boycott of Tesla illegal, which of
course it's not, because you don't have to buy law
buy a Tesler. But he is going to buy at
Tesla today just to help it. He's made eline out for.

Speaker 3 (02:26):
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