US President Donald Trump refused to say whether the US economy faces a recession or price increases following the misunderstanding of his administration on tariff threats against some of his nearest business partners.
When asked if he expected a recession this year, Trump said there was a “transition period”.
The Secretary of Commerce, Howard Lunick, however insisted that there would be no contraction in the greatest economy in the world, while recognizing that the price of certain goods could increase.
It comes after a volatile week for the American financial markets, investors being struggling with the uncertainty of the inclination of its administration on certain parts of its aggressive commercial policies.
The new Tit-For-Tat prices from China, which target certain American agricultural products, come into force on Monday.
Addressing Fox News in an interview broadcast on Sunday but recorded Trump on Thursday, answered a question on a recession: “I hate predicting things like that. There is a period of transition because what we do is very big. We bring wealth in America. It is a great thing.”
“It takes a little time, but I think it should be great for us,” added Trump.
Last week, the United States imposed steep prices on imports from Mexico and Canada, but then exempted many of these goods two days later.
The equity markets have dropped in the United States since the Trump administration sparked a trade war with the best trade partners in the United States.
Investors fear that prices will lead to higher prices and, ultimately, the growth of the greatest economy in the largest economy in the world.
Speaking on NBC on Sunday, Lutnick said: “Foreign products can become a little more expensive. But American products will become cheaper”.
But when asked if the American economy could face a recession that Lutnick added: “Absolutely not … there will be no recession in America.”
