Trump won’t rule out potential recession this year

Subscribe to enjoy similar stories. President Donald Trump said Americans should expect “a little disturbance" from his tariffs and trade policies and he wouldn’t rule out the potential for a recession this year. “I hate to predict things like that," Trump told Fox News’ Sunday Morning Futures.

“There is a period of transition, because what we’re doing is very big. We’re bringing wealth back to America." The taped interview ran after Trump’s tariff moves have whiplashed stock investors. First, the administration imposed broad 25% levies on goods from Mexico and the U.S.

Then it delayed the tariffs on some of those imports for one month, when Trump will reveal a broad set of tariffs on imports from countries that impose tariffs on American goods in what he calls “reciprocal tariffs." Trump’s erratic application of tariff policy has contributed to investor nervousness. Tariffs could raise prices for American consumers, who are already dealing with inflation that has stubbornly remained higher than Federal Reserve goals. Signs of an economic slowdown are also stoking fears about a recession.

In a separate television appearance on Sunday, Commerce Secretary Howard Lutnick said Americans should “absolutely not" expect a recession. “There’s going to be no recession in America," Lutnick told NBC’s Meet the Press. Lutnick said Trump’s reciprocal tariffs will ultimately drive down prices and lead to an economic boom for the U.S.

“You are going to see over the next two years the greatest set of growth coming from America," he said. “I would never bet on recession. No chance." Lutnick also confirmed that Trump’s 25% tariffs on steel and aluminum imports will take effect this Wednesday and that reciprocal tariffs will begin April 2.