President Donald Trump has been hesitant to predict whether the U.S. economy is heading towards a recession. He mentioned there is a “period of transition” in the economy, emphasizing changes his administration is making to bring wealth back to America.
Commerce Secretary Howard Lutnick, on the other hand, confidently stated that he does not see a recession in the near future. However, he also warned that prices for some products might go up.
This uncertainty comes after a week of swift changes in trade policy, leaving investors nervous. Recently, China imposed new tariffs that impact U.S. farm products, which added to the tension in financial markets.
In a recent Fox News interview, Trump was asked about the possibility of a recession. He said, “I hate to predict things like that,” but reiterated that the changes happening are significant and beneficial for America. He expressed optimism, suggesting that these changes would ultimately be great for the country.
Last week, the U.S. imposed a 25% tariff on imports from Mexico and Canada, only to reverse some of those decisions just two days later. Trump increased the tariff on Chinese goods to 20%, prompting Beijing to respond with its own tariffs on U.S. agricultural products.
Trump has accused China, Mexico, and Canada of not doing enough to combat illegal drugs and immigration, but those countries have denied the allegations.
Wall Street has reacted negatively to these developments, with stock prices falling as fears of a trade war grow. Investors worry that tariffs will raise prices and slow down economic growth.
On NBC, Lutnick noted that while foreign goods might become pricier, American products could become cheaper. He firmly stated that he does not foresee a recession for the U.S. economy.
Former Commerce Department official Frank Lavin shared a more cautious outlook, suggesting that while the trade war won’t likely escalate dramatically, tariffs will still place some strain on the U.S. economy.
Overall, as trade policies shift and tensions rise between the U.S. and its trading partners, the future of the economy remains a topic of significant discussion and concern.
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