US President Donald Trump refused to say if the US economy faced a recession or the price increased after his administration turned tariff threats to some of his closest trade partners.
Asked if he was expecting a recession this year, Trump said the “transitional period” was happening.
However, the Howard Lutnick Store Secretary insisted that there would be no contractions in the world’s largest economy, while admitting that the price of some goods could grow.
It comes after an unstable week for US financial markets, while investors have clashed with uncertainty from the perseverance of his administration on some key parts of his aggressive trade policies.
The new Tarife Tit-Za-Tat from China, which target some products on US farms, enter into force on Monday.
In an interview with Fox News in an interview aired on Sunday, but noted Thursday, Trump answered the question about the recession: “I hate predicts such things. There is a period of transition, because what we do is very big. We return wealth to America. This is a big deal.”
“It takes a little time, but I think it should be great for us,” Trump added.
Last week, the US has imposed steep new 25% of the imports of imports from Mexico and Canada, but then many goods were exempted only two days later.
Trump also doubled the tariff of blankets on the goods from China to 20%. In response, Beijing announced the retaliation of taxes on some imports of agricultural goods from the USA.
He accused China, Mexico and Canada of not doing enough of completing the flow of illegal drugs and migrants to the US. Three countries rejected the charges.
Wall Street stock has fallen since Trump has caused a trade war with the best American shopping partners.
Investors are afraid that the tariffs will lead to higher prices and eventually the growth of recesses in the world’s largest economy.
Speaking on NBC Sunday, Lutnick said, “Foreign goods can become a little more expensive. But US goods will become cheaper.”
But when asked if the American economy can face a recession that Lutnick added: “Absolutely no … There will be no recession in America.”
