(MENAFN) In an interview with N1 Television on Tuesday, Croatian economic analyst Petar Vuskovic stated that while inflation serves as the catalyst for a recession, U.S. President Donald Trump’s tariffs could be the spark that ignites it.

"It is not a question of whether the economic armageddon will hit us because it has already hit us. We can see it from the collapse of the stock markets. Investors are scared, it is not known what will happen next. This is a situation that definitely marks a new period, which is the period of recession," Vuskovic remarked.

His statements came in the wake of another decline in European stock markets on Monday, marking the fourth consecutive day of losses, while the S&P 500 fell for a third straight day amid concerns over U.S. trade tariffs.

Vuskovic pointed out that companies have already started to lay off employees, indicating that the economic environment is "practically worse" than during the COVID-19 pandemic. "All stakeholders are at risk, from state budget revenues, investors, company owners, employees ...Simply put, the economic situation is bad," he added.

On the implications for Croatia, Vuskovic highlighted that the nation’s exports to the United States total 587 million euros (642 million U.S. dollars) annually, which is less than 10 percent of Europe’s total exports to the U.S. market. However, he cautioned that Croatian consumers will likely experience increased prices on imported goods, including computer components, as a result of the tariffs.

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