Kathmandu. On the one hand, US President Donald Trump is threatening all the countries of the world by making big claims by breaking the taffir bomb. On the other hand, the global valuation agency Moody’s has given a big blow to Trump.
In its latest report, Moody’s warned that the U.S. is on the brink of a severe recession and a third of the U.S. economy is already facing a crisis. This warning is bad news not only for Trump but also for america.
Mark Zandy, chief economist at Moody’s Analytics, warned that state-level data indicates that the US economy is on the brink of recession. Based on the analysis, he said, “The situation is such that states that account for about one-third of the US GDP are either in the grip of recession or are at high risk of recession.” ’
President Trump may be citing GDP growth and inflation data as evidence of economic success and claiming the positive impact of tariffs. But Moody’s economists believe the U.S. is on the brink of another recession, which could lead to huge economic losses.
The Moody’s report quoted Jandy as saying that states that account for one-third of america’s GDP are going through recession or are at risk of recession. Also, growth appears to be stable in one-third of states. While only one-third of the remaining states have recorded growth. ’
According to Jandi, the crisis seems to be increasing due to cuts in government jobs. “The north-east, midwest and Washington DC regions are the worst affected, where jobs are declining. More than 22,000 government jobs were removed in Washington DC from January to May following Trump’s inauguration. ’
A recent Reuters report also shared some signs of recession risk to the U.S. economy. In August 2025, the US production PMI fell to 48.7. The condition of the factories is worse than during the ‘American Great Depression’.
According to the report, the US manufacturing sector recorded a sharp decline for the sixth consecutive month in August at a time when the US is attacking tariffs on countries around the world. Giving the reason for this, it has been said that the country’s factories are facing the bad effects of the Trump administration’s import duties. That is, it is clear that tariffs are proving to be harmful rather than profitable. Manufacturers have described the current business environment amid customs tensions as worse than the Great Depression. ’
Citing a survey by the US Institute of Supply Management (ISM), the report said that some manufacturers have made it difficult to produce goods in the US due to high import duties.
On the other hand, President Trump is defending his trade policy despite all the signs and figures. He called tariffs a measure in the interest of the country and called for the need to revive america’s long-declining industrial base.
