Delta Warns Trump’s Trade War Will Weigh on the Economy

Delta Air Lines on Wednesday became one of the largest American companies to warn that President Trump’s escalating trade war was weighing on its business and the global economy.

Speaking before Mr. Trump reversed many of the tariffs he had just imposed on most countries, Delta’s chief executive, Ed Bastian, said a recession was possible as companies pulled back spending. “Everyone’s being prepared for uncertainty,” he told CNBC, “if that continues, and we don’t get resolution soon, we will probably end up in a recession.”

Mr. Trump’s announcement helped send Delta stock up over 20 percent on Wednesday and prompted a broad rally in stocks. The president said he would pause the high tariffs for 90 days but kept a 10 percent tariff on most countries in place.

Still, the president’s reversal might not be enough to dispel the uncertainty that has made it hard for companies to plan ahead. The Trump administration also said on Wednesday that it would significantly raise tariffs on China. The United States might not strike trade deals with other countries within 90 days.

Airlines are highly sensitive to changes in the economy because air travel is among the first things that individuals and businesses can cut back on when they are worried about their paychecks or profits.

Mr. Bastian expressed shock at the speed at which the trade tensions had taken the wind out of the economy.