Trump Addresses Economic Transition Amid Escalating Trade War
President Trump described the U.S. economy as in a “transition” phase amid escalating trade tensions, avoiding direct comment on a potential recession. Commerce Secretary Lutnick affirmed there would be no recession despite some anticipated price increases for foreign goods. The situation follows a week of market volatility due to changes in trade policy, including new tariffs from China.
United States President Donald Trump has declined to confirm if the economy is facing a recession, stating that the nation is undergoing a “period of transition” amid escalating trade tensions with key partners. During an interview, Trump noted, “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.”
Commerce Secretary Howard Lutnick, however, asserted that the U.S. economy will not contract, despite indicating that prices for some goods might rise. This follows a tumultuous week in U.S. financial markets as investors reacted to the administration’s mixed messages regarding trade policies. New tariffs from China on certain U.S. agricultural products are due to be implemented shortly.
Last week, tariffs were imposed on imports from Mexico and Canada, although many exemptions were granted shortly thereafter. As a consequence, stock markets have experienced declines, with concerns that tariffs may increase prices and hinder economic growth. Lutnick further declared, “Foreign goods may get a little more expensive. But American goods are going to get cheaper.” Nevertheless, he firmly maintained, “Absolutely not… There’s going to be no recession in America.”
In summary, President Trump acknowledges an ongoing transition in the U.S. economy but refrains from predicting a recession. Conversely, Commerce Secretary Lutnick supports the view that the economy will not contract, emphasizing potential price increases for imported goods. This situation arises amidst active trade tensions, leading to market uncertainty and fluctuations. The administration’s contradictory stance on tariffs continues to weigh on investor confidence.
Original Source: www.bbc.com
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