Credit: Alex Brandon, AP
WEST PALM BEACH, Fla. — President Donald Trump is downplaying concerns from businesses about the uncertainty surrounding his planned tariffs on various American trading partners, despite worries about higher prices. He also isn’t ruling out the possibility of a recession this year.
After initially imposing and then quickly pausing 25% tariffs on imports from Mexico and Canada, which caused markets to drop over fears of a trade war, Trump confirmed that his broader plan for “reciprocal” tariffs will go into effect on April 2, raising tariffs to match those imposed by other countries.
“April 2nd, it becomes all reciprocal,” Trump said in a taped interview with Fox News Channel’s “Sunday Morning Futures.” “What they charge us, we charge them.”
When asked about the Atlanta Fed’s forecast of an economic contraction in the first quarter, Trump acknowledged that his plans could impact U.S. growth but insisted it would ultimately be “great for us.”
Regarding whether he anticipated a recession in 2025, Trump responded: “I hate to predict things like that. There is a period of transition because what we’re doing is very big. We’re bringing wealth back to America. That’s a big thing.” He added, “It takes a little time. It takes a little time.”
The past week on Wall Street was turbulent, with significant market swings driven by economic worries and uncertainty over Trump’s tariff policies.
Trump brushed off concerns from businesses seeking stability for investment decisions. He claimed that for years, “the globalists, the big globalists have been ripping off the United States” and that his policies were simply about “getting some of it back” and ensuring fair treatment for the country.
“The tariffs could go up as time goes by, and they may go up, and, you know, I don’t know if it’s predictability,” the Republican president said.
Last week, Trump lifted tariffs on American car manufacturers from Mexico and Canada, as well as on most imports to the U.S., but kept tariffs on goods from China in place.
Additional tariffs are set to take effect this week, with Commerce Secretary Howard Lutnick confirming to NBC’s “Meet the Press” that 25% tariffs on steel and aluminum imports will begin on Wednesday. Lutnick also stated that Trump’s proposed tariffs on Canadian dairy and lumber would be delayed until April.
“Will there be distortions? Of course,” Lutnick said. “Foreign goods may get a little more expensive. But American goods are going to get cheaper, and you’re going to be helping Americans by buying American.”