President Donald Trump has downplayed the concerns voiced by businesses regarding the uncertainty and potential economic impact caused by his planned tariffs. These tariffs target a range of American trading partners, sparking worries about higher prices and market instability. Trump, however, remains unfazed by the possibility of a recession in the coming year.
In a statement, Trump emphasized that American goods are set to become cheaper, encouraging consumers to support domestic products. He reassured the public, saying, “We’re bringing wealth back to America.” This sentiment was expressed amid a turbulent week on Wall Street, where fluctuations dominated by economic worries and tariff-related uncertainties were prevalent.
Trump's decision to dismiss business concerns comes at a time when companies are seeking stability to make informed investment decisions. Despite lifting tariffs on Mexico and Canada for American car manufacturers last week, he retained tariffs on Chinese goods. Additionally, plans for broader "reciprocal" tariffs are slated for implementation on April 2, aligning U.S. tariffs to match those assessed by other countries.
“April 2nd, it becomes all reciprocal. What they charge us, we charge them.” – Donald Trump
The 25% tariffs on imports from Mexico and Canada have already shaken markets with fears of a trade war. Further tariffs are expected this week, as Commerce Secretary Howard Lutnick announced the imposition of 25% tariffs on steel and aluminum imports effective Wednesday. Lutnick also mentioned that tariffs on Canadian dairy and lumber would be postponed until April.
Trump justified these measures by criticizing what he termed as exploitation by globalists over the years.
“For years the globalists, the big globalists have been ripping off the United States,” Trump stated, adding that “all we’re doing is getting some of it back, and we’re going to treat our country fairly.”
While acknowledging the potential impact on U.S. growth, Trump appeared hesitant to predict a recession, responding to queries about economic contraction warnings from the Atlanta Fed.
“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 conceded when asked about expectations for a recession in 2025.
