Cardano founder Charles Hoskinson warned that the United States faces a significant risk of recession if several global forces unite.
In a recent comment, he stated that the potential collapse of the AI bubble, combined with longstanding U.S. allies shifting trade and investment towards China, could push the economy into recession.
As a result, Hoskinson argued that prolonged economic divergence would sharply reduce consumption in the U.S. and could be economically catastrophic without timely policy intervention.
🔸 What could lead the U.S. to recession
The founder of Cardano made this statement in a recent interview, responding to questions about whether the U.S. could enter a recession and when that might happen. He described a chain reaction in which financial strain and geopolitical restructuring weaken foreign direct investment in the U.S.
He pointed to deepening economic ties with China among Western partners, including new trade agreements and expanded diplomacy with Canada and the United Kingdom, as signs of a gradual but significant shift in global trade dynamics.
Hoskinson also warned about the potential collapse of the AI bubble and rising retaliatory tariffs in Europe as factors that could lead the U.S. to recession.
🔸 Potential timing
According to him, losing a significant share of trading partners over a three- to five-year period would directly weaken consumption in the U.S. Since consumption is the backbone of the economy, he argued that losing up to 50% of trading partners would have a serious impact.
He adds that if these pressures go unaddressed, a recession in the U.S. will become inevitable. However, he insists that timely and decisive government action can still prevent an economic downturn.
🔸 Concerns about a potential recession persist
Amid rising trade tensions, financial experts warn that the U.S. faces increasing risks of recession. In March 2025, Goldman Sachs estimated the probability of a recession in the U.S. at 35% over the next 12 months, citing escalating trade wars.
