US President Donald Trump declined to confirm whether the economy faces a recession or rising prices amid his administration’s shifting stance on tariffs against key trading partners. During a Fox News interview recorded Thursday and aired Sunday, Trump called the current economic climate a “period of transition,” emphasizing efforts to “bring wealth back to America” despite market turbulence.
Commerce Secretary Howard Lutnick dismissed fears of a recession, stating, “Absolutely not,” but acknowledged that imported goods might become costlier. His remarks follow a week of financial market volatility triggered by the administration’s abrupt reversals in trade policy, including new tariffs on Mexico, Canada, and China—only to later exempt many goods.
Retaliatory tariffs from China, targeting US farm exports like soybeans and pork, took effect Monday. Trump defended the moves, accusing China, Mexico, and Canada of failing to curb illegal drugs and migration—a claim all three nations deny.
Analysts warn the tariffs could raise consumer prices and slow economic growth. Former Commerce Department official Frank Lavin predicted the trade war would not spiral out of control but cautioned that tariffs would remain a “burden” on the economy.
