The U.S. Chamber of Commerce on Thursday warned of the rising risk of an economic recession from escalating U.S.-China trade tensions, urging both countries to withdraw the new tariffs and resume trade talks.
"At this moment of uncertainty, it is critical that our leaders take decisive steps to bolster the economy and avoid actions that could turn talk of recession into reality," Thomas Donohue, chief executive of the U.S. Chamber of Commerce, wrote in an opinion piece published on U.S. daily Washington Post.
"For the Trump administration's part, the escalation of trade tensions with China must come to an end," Donohue said, adding that a U.S. Chamber of Commerce survey of 138 recent earnings calls of Fortune 500 companies revealed that executives are overwhelmingly concerned about the economic impact of tariffs.
Donohue warned that the current path of constant tariff escalation doesn't increase the likelihood of a deal and risks a recession in the United States.
Donohue called on leaders of both countries to withdraw the additional tariffs scheduled to take effect respectively on Sept. 1 and Dec. 15, and return to the negotiating table in good faith.
"Just as growth is not guaranteed, neither is a recession. Both result from the choices we make," he said.
Donohue's remarks came as Wall Street has sent warning signs of a possible economic recession ahead as the trade disputes continue to take a toll on U.S. businesses and the overall economy.
About 38 percent of economists predict that the next U.S. recession will begin in 2020, while other 34 percent of economists believe it will occur in 2021, according to a survey released by the National Association for Business Economics earlier this month.