Forbes, March 28, 2019 — The r-word, for “recession,” came up a lot in a conference call with Jonathan Smoke, chief economist for Atlanta-based Cox Automotive, to discuss U.S. auto sales in March as well as the U.S. economy in general.
Smoke described the economy as experiencing “rapid deceleration,” in a conference call on March 28. On top of other headwinds, like record-high prices for cars and trucks, the recently renewed threat of new, 25% tariffs on imported vehicles and parts is a big risk factor for U.S. auto sales, he said.
Tariffs could tip the U.S. auto industry into a recession, which in turn could threaten the rest of the U.S. economy, Smoke said. He said the likelihood of a recession rises to “above 50 percent” in early 2020.
