US President Donald Trump has refrained from confirming whether the US economy is heading toward a recession or experiencing inflation, following recent adjustments in tariff policies targeting some of its key trading partners.
When questioned about the possibility of a recession this year, Trump characterized the economic landscape as undergoing a ‘period of transition.’ Meanwhile, Commerce Secretary Howard Lutnick assured that the US economy would not contract, though he acknowledged that the prices of some goods might increase.
The remarks come after a turbulent week for US financial markets, with investors reacting to the administration’s shifts in trade policy. The uncertainty stems from a series of reversals, including the imposition and subsequent exemptions of tariffs on imports from Mexico and Canada, as well as heightened trade tensions with China.
Speaking in an interview with Fox News, recorded on Thursday and aired on Sunday, Trump said, “I hate to predict things like that. There is a period of transition because what we’re doing is very big. We’re bringing wealth back to America. That’s a big thing. It takes a little time, but I think it should be great for us.”
Last week, the US introduced new 25% tariffs on imports from Mexico and Canada but reversed course on many of these measures just two days later. Additionally, Trump increased tariffs on Chinese goods from 10% to 20%, prompting Beijing to implement retaliatory duties on select US agricultural imports.
As of today, China has imposed new tariffs ranging from 10% to 15% on US farm products, including chicken, beef, pork, wheat, and soybeans.
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