US President Donald Trump has avoided confirming whether the country is heading toward a recession or facing price increases, as his administration continues to send mixed signals on trade policies.
When asked about a possible recession, Trump described it as a period of transition. Meanwhile, Commerce Secretary Howard Lutnick assured that the US economy would not shrink, though he admitted that some products could become more expensive.
Trade Policies Cause Market Volatility
The uncertainty follows a turbulent week for US financial markets, with investors struggling to interpret the administration’s shifting stance on tariffs. Recently, China imposed new tariffs on certain US agricultural products, escalating the ongoing trade tensions.
Trump avoided making predictions. He stated, “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 added that while the process takes time, it would ultimately benefit the US.
Tariff Decisions and Their Impact
Last week, the US imposed a 25% tariff on imports from Mexico and Canada but quickly reversed course, exempting several products just two days later. At the same time, Trump doubled tariffs on Chinese goods to 20%, prompting Beijing to impose retaliatory duties on American farm products.
Starting today, China has introduced additional tariffs of 10% to 15% on US agricultural exports, including chicken, beef, pork, wheat, and soybeans. Trump has accused China, Mexico, and Canada of failing to curb illegal drug trafficking and unauthorized migration into the US. However, all three countries have rejected these claims.
Economic Concerns Grow Amid Trade War
The trade conflict has shaken Wall Street, with stock prices dropping as investors worry about potential economic damage. Many fear that rising tariffs will increase consumer prices and slow down economic growth.
Lutnick acknowledged that “foreign goods may get a little more expensive,” but he assured that “American goods are going to get cheaper.” When asked about the risk of a recession, he dismissed the idea, saying, “Absolutely not… There’s going to be no recession in America.”
Former US Commerce Department official Frank Lavin, downplayed concerns over the trade war spiraling out of control. He predicted that while tariffs might ease over time, they would still place “an extra burden on the US economy.”
