President Trump is entering a critical week for the economy amid growing fears that his penchant for tariffs could stall growth and undercut progress on inflation.

Trump has described Wednesday as “Liberation Day,” when his administration will impose sweeping reciprocal tariffs on other nations with duties on U.S. goods. The March jobs report will also be released on Friday, providing additional data about the strength of the labor market, particularly in the wake of thousands of federal government employees fired by the administration.

Experts described the economy as at something of a crossroads. Data about the labor market and wages have been generally positive, economists said. But the closely watched University of Michigan Survey of Consumers issued a report Friday that found consumer sentiment dropped to its lowest point since November 2022 amid fears of rising prices that could be worsened by tariffs.

A recession is not inevitable, economists said. But the direction of the economy will depend largely on how Trump and his team proceed in the weeks ahead.