Donald Trumps economy on verge of crisis bigger | Political News

President Donald Trump asserted that he had “defeated” inflation and that the US economy was returning to normalcy in a bullish assertion earlier this 12 months.

However, despite Trump’s claims, that seems far from the truth as Americans grapple with rising costs and a new financial crisis looming ominously close.

Over the past century, the United States has weathered a number of vital financial crises, including the 2008 financial crash and Great Recession, Black Monday in 1987, and the Great Depression of the late Nineteen Twenties and early Thirties.

Now, consultants are sounding the alarm about another impending crisis for the US economy. This crisis pertains to the car lending market and an escalating quantity of car repossessions in the United States due to Americans defaulting on their car finance funds – a drawback affecting hundreds of thousands and setting off warning alerts on Wall Street.

Ignas Ryla, head of B2B Sales at used car elements company Ovoko, issued a stark warning in a assertion to ReachPlc: “Auto loan delinquencies have reached alarming levels, with overall 60+ day delinquency rates at 1.38% in Q1 2025, exceeding the 1.33% peak in 2009, and subprime delinquencies hitting a record 6.6%.”

Ignas added: “1.73 million vehicles were repossessed in 2024, the highest number since the 2008 financial crisis, and Americans now owe $1.66 trillion (£1.24tn) in auto debt, with trends looking alarmingly similar to those before the Great Recession.

“The current collapses of Tricolor and First Brands have uncovered fraud and reckless lending, with major banks, including JP Morgan Chase and Fifth Third, set to lose a whole bunch of hundreds of thousands of {dollars}.

“The average new car price has topped $50,000 (£37,843) for the first time, 20% of newly originated car notes are over $1,000 (£749) monthly, and Gen Zers have the highest delinquency rate at 7.5%.”

Carl Hazeley, CEO of financial info platform Finimize, has echoed these considerations, stating that the issue was reaching Great Recession ranges of magnitude and cautioning we may very well be witnessing the start of a ‘cascading’ impact on the US economy studies the Express.

Carl said: “Car finance defaults are worth watching closely. Auto loan delinquencies are approaching Great Recession levels, with nearly 5% of loans currently delinquent and subprime delinquencies at 6.43%.

“What makes this significantly regarding is the cascade impact. Losing access to a car can imply shedding your job, your skill to get your youngsters to college, or access to healthcare.”

Carl added: “And proper now, Americans are being rejected for auto loans at the very best charges since 2013, with anticipated rejection charges at 33.5%.The warning indicators are there in the data.”

Yet, car finance payments and defaults aren’t the sole economic concerns triggering alarm bells on Wall Street, as Trump’s intensifying trade war with China threatens to destabilize the US and global economies while he threatens to impose further tariffs, studies the Telegraph.

The expectation is that a center ground might be discovered between Trump and Chinese premier Xi Jinping at the upcoming Asia-Pacific Economic Cooperation summit in South Korea next week.