US to face recession this year? Here's how it will affect your grocery list

JPMorgan Chase & Co. has made a prediction that the American economy will face a recession this year. The scenario will likely occur due to Donald Trump's new tariffs.

In a note to investors released on Friday (April 4) evening, JP Morgan's chief US economist, Michael Feroli, said the country's gross domestic product (GDP) is expected to contract “under the weight of the tariffs”.

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“We now expect real GDP to contract under the weight of the tariffs, and for the full year (4Q/4Q) we now look for real GDP growth of -0.3%, down from 1.3% previously,” Bloomberg quoted Michael Feroli as saying on Friday.

“The forecasted contraction in economic activity is expected to depress hiring and over time to lift the unemployment rate to 5.3%,” Feroli added.

Trump has revealed that US will charge at least a 10% tariff on practically all goods imported to the country. China retaliated by announcing 34% tariffs on American goods.

How much will this impact your grocery list? Let's find out.

1. If US lands into recession, cost of some imported staples like olive oil, coffee, or canned goods will touch the sky.

2. Some reports say you can see smaller packages of goods at the grocery store.

3. Retailers like Walmart or Kroger might not offer as much doscounts and offers now.

What is a recession?

In economics terms, recession is a phase or a business cycle where a broad decline in economic activities is seen for a longer period of time.

(With inputs from agencies)