Catenaa, Monday, March 10, 2025- US President Donald Trump refused to rule out a recession from his planned tariffs as the US economy is in a period of transition.
In an interview with Fox News on Sunday, the president said his plans for bigger “reciprocal” tariffs will go into effect on April 2.
The White House had initially imposed 25% tariffs on imports from Mexico and Canada before quickly pausing them, leaving Wall Street unstable over concerns of a possible trade war.
When asked about the Atlanta Federal Reserve’s warning of an economic decline in the first quarter of the year, Trump appeared to acknowledge that his tariffs could impact the country’s economic growth.
But despite claiming the tariffs will ultimately be “great” for the U.S., the president refused to say whether he expects the country to enter a recession this year, as major banks now warn.
“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,” he said. “And there are always periods of — it takes a little time, it takes a little time. But I think it should be great for us. I mean, I think it should be great. It’s gonna be great ultimately for the farmers.”
Trump’s answer contradicts Commerce Secretary Howard Lutnick’s remarks aired the same day, in which he said Americans should “absolutely not” brace for a recession.
“Anybody who bets against Donald Trump — it’s like the same people who thought Donald Trump wasn’t a winner a year ago,” Lutnick told NBC Newson Sunday. “Donald Trump is a winner. He’s going to win for the American people, that’s just the way it’s going to be. There’s going to be no recession in America.”
Following the statement, Futures tied to the Dow were lower by 478 points or 1.2% Monday morning. S&P 500 futures fell by 1.37% and Nasdaq futures were down 1.6%.
