Trump Won't Rule Out Recession As US Tariffs Begin
President Trump refused to rule out the possibility that his economic policies, including aggressive tariffs, could lead to a recession. In an interview with Fox ÃÛèÖÖ±²¥, he acknowledged a “period of transition†but insisted that his policies would ultimately benefit the economy. The administration recently imposed sweeping tariffs on Canada, Mexico, and China, prompting immediate retaliatory measures. Trump’s tariffs have shaken markets and drawn criticism from industries such as automakers, who warn of severe financial consequences. Some economists and banks, including JP Morgan and Goldman Sachs, have increased their recession forecasts in response to the uncertainty. Commerce Secretary Howard Lutnick dismissed concerns, stating that tariffs would help the economy grow and insisting that a recession was unlikely. Lutnick argued that domestic goods would become cheaper, offsetting the higher cost of foreign imports. However, economists warn that tariffs could enable American companies to raise prices rather than lower them. Austan D. Goolsbee, president of the Chicago Fed, noted that uncertainty over trade policy was already affecting businesses. Despite concerns, Trump defended his approach, saying his policies were “bringing wealth back to Americaâ€.
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Ontario’s premier, the leader of Canada’s most populous province, is now charging 25% more for electricity shipped to 1.5 million Americans in response to U.S. President Donald Trump’s tariff plan.Â
