Trump dodges recession call as top advisor insists 'no chance'
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The news: US President Donald Trump declined to rule out a recession this year, as his tariffs and economic policies fuel market turmoil, saying the economy is in a “period of transition.” The remarks during a Fox News interview stood in stark contrast with those made by Commerce Secretary Howard Lutnick, who insisted, “There’s going to be no recession in America.”
The numbers: The S&P 500 has fallen more than 6% since its 19 February peak, erasing gains made since Trump’s re-election with several sectors, including technology stocks, suffering steep losses.
Canada has retaliated with tariffs on USD20.5 billion ($32.5 billion) of US exports, and China plans to impose additional levies. Trump has repeatedly postponed tariffs on Canada and Mexico but said exemptions will expire on 2 April, while a separate 25% tariff on foreign steel and aluminium is set to take effect on 12 March.
The Atlanta Federal Reserve forecast last week a 2.8% contraction in first-quarter GDP, down from a previous 2.3% growth, amid high levels of uncertainty.
What they said: Trump, when asked if he expected a recession this year, said, “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, 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.”
Fox News’ Maria Bartiromo pressed Trump on whether businesses could expect stability after 2 April, when the new reciprocal tariffs take effect, asking if any changes were planned.
Trump responded that tariffs could still increase, stating, “It depends,” but added, “I don’t think we’ll go down.” He dismissed calls for clarity from business leaders, calling it “almost a sound bite.”
Commerce Secretary Howard Lutnick, speaking on NBC’s Meet the Press on Sunday said, “Absolutely not” when asked if Americans should brace for a recession.
“I would never bet on recession,” he said. “No chance.” He added “There’s going to be no recession in America.”
The sources: The Washington Post, The New York Times, NBC News
