President Trump refused to rule out the possibility that his economic policies, including aggressive tariffs on American trading partners, could lead to a recession in an interview aired on Fox News on Sunday.
Trump also told Maria Bartilomo, host of “Sunday Morning Futures,” that he is considering increasing tariffs on Mexico and Canada.
In an interview at the White House on Thursday, Baltiromo asked Trump, referring to “increasing concerns about slowing down.” “Are you hoping for a recession this year?”
“I hate predicting such things,” Trump replied. “What we do is so big, there is a period of transition. We bring wealth back to America. It’s a big thing, there’s always a period and it takes a little time. It takes a little time, but I think it should be great for us.”
Last week, Trump’s challenge of swept tariffs in Canada, Mexico and China shaking stock markets and bringing pushbacks from industries, including the biggest automakers who told the president that their duties would destroy their businesses. Canada quickly retaliated tariffs on US exports worth $20.5 billion, threatening additional measures. China is also putting tariffs on US goods and is planning to impose another round on Monday.
On Thursday, Trump suddenly reversed the 25% tariff on many Canadian and Mexican exports.
But the president is planning more tariffs soon. It raises the possibility of a global trade war that will damage the economy. On Wednesday, his administration is expected to introduce a 25% tariff on all foreign steel and aluminum previews last month. And the president says he hopes for more taxation on April 2, when he plans to impose what he calls “mutual tariffs” to answer tariffs and other trading practices in other countries.
Baltiromo told Trump that business leaders appreciate certainty. Will it become clear? ”
“We may go up with some tariffs. It depends. We may go up. Trump said, “There’s a lot of clarity in them. They just use it. It’s almost a bite of sound. They always say we want clarity. Come on, our country has been stripped for decades, for decades, but we’re not torn apart anymore.”
Economists have become pessimistic about the economic outlook amid Trump’s eye-opening approach to tariffs. The concern is that ongoing volatility will further cool this activity and strengthen the already ongoing economic slowdown.
Heading into Trump’s second term at the White House, the economy has settled at a more modest pace of growth. The economic background remains solid with many indicators, but policies such as tariffs, deportation and sudden government spending cuts at the heart of Trump’s economic agenda are expected to test their resilience.
Tariffs, for example, are widely expected to raise prices on everyday products as they force businesses and consumers to redeploy resources and cut spending elsewhere. Rising inflation is limited to the extent that the Federal Reserve can support the economy if conditions worsen. For the time being, central banks have opted to keep interest rates between 4.25% and 4.5%.
Federal Reserve Chairman Jerome H. Powell repeated on Friday that he was not “in a hurry” to lower interest rates as the economy remained in good condition, but acknowledged the potentially destructive nature of Trump’s plans, particularly on inflation.
The inactive growth combined with rising prices surprised the stag’s fears. This is a toxic combination that puts the Fed in an even more difficult position.
In an interview Friday, Austan D. Ghoolsby, the president of the Chicago federal government and a voting member of this year’s Policy Setting Committee, said such dynamics were “on the radar screen.”
Meeting the press on Sunday, Commerce Secretary Howard Lutnick said tariffs “help us to grow our economy in ways we have never grown before.
We were asked about forecasts from banks like JP Morgan and Goldman Sachs. He says a recession is more likely in the next 12 months, and Lutnick said Americans shouldn’t endure the recession.
“I never wagered on a recession,” he said. “There’s no chance.”
Lutnick argued that while the Trump administration’s efforts to reduce the government’s deficit will lower interest rates, digging for more oil will also lower energy prices. He acknowledged that tariffs could raise the prices of foreign goods, but said domestic goods would be cheaper.
Many economists have expressed other views, saying that tariffs on foreign products can help businesses become more profitable by providing us with space to raise prices.
“Foreign products may be a little more expensive,” Rutnick said. “But American products will be cheaper and buying Americans will help Americans.”
