- President Donald Trump has minimized fears of an economic recession in an interview with Fox News.
- Trump said the US economy will face a “transition period” when it adjusts to its prices.
- Economists predict that Trump prices can increase inflation without stimulating American manufacturing.
President Donald Trump has minimized economic uncertainty about his prices, saying that a “transition period” is heading to the American economy as it adapts. But in particular he did not exclude a recession in the near future.
Trump interrupted his 25% prices on imports from Mexico and Canada earlier this week, just after their entry into force. In an interview with the Fox News program “Sunday Morning Futures”, Trump said that he had interrupted his planned prices on Mexico and Canada to help American car manufacturers and “to a certain extent”, to help both countries. Trump interrupted the prices until April 2.
“I wanted to help American car manufacturers until April 2,” Trump said on Fox. “On April 2, everything becomes reciprocal. What they charge us, we invoice them.”
After a solid start to year, the stock market has experienced significant volatility in recent weeks. This week, the market experienced considerable uncertainty, with the S&P 500 up to 2% Thursday after price concerns.
However, Trump minimized fears of a possible recession in the Fox interview. When he was asked if he expected a recession in 2025, Trump replied: “I hate predicting things like that. There is a transition period, because what we do is very tall. We put the wealth in America.”
“It takes a little time,” he added.
Trump also avoided questions about the clarity of public enterprises on how his prices could disrupt the economy.
“They have a lot of clarity,” he said. “They just use it. It’s like, almost a sound bite. They always say that:” We want clarity “,” said Trump to Fox about business asking for economic clarity.
Trump has paused the prices with an impact on American car manufacturers on March 5 after Ford, Stellantis and General Motors called the president asking for a stay. When he was in a hurry by Fox as to “car manufacturers will do for a month” while the prices are interrupted, Trump said it was a “transition period”.
“I said,” Listen, I’m going to do it once, but after that, I don’t “,” Trump told Fox. “They called me and they wanted help during this small period of transition, and I gave them.”
Economists are still struggling with the impact of Trump’s prices, which, according to some economists, will increase inflation. Some analysts say that Trump’s prices will not help increase manufacturing in the United States.
“The prices will not increase American manufacturing: technology, rather than trade, has been mainly responsible for the decrease of fifty years of manufacturing jobs,” wrote John Veroneau, former representative of American trade, in an article on February 11 on the website of the Foreign Relations.
businessinsider
