In West Palm Beach, Florida, President Donald Trump has downplayed concerns from the business community regarding the uncertainty generated by his proposed tariffs on numerous global trade partners. Despite fears of increased costs and potential economic disruption, Trump has not discounted the possibility of a recession occurring within the year. After initiating and then suspending a 25% tariff on imports from Mexico and Canada, which instigated market instability due to concerns over a potential trade war, Trump aims to enforce broader “reciprocal” tariffs by April 2. This plan involves raising tariffs to levels equivalent to those imposed by other countries.
During an interview on Fox News Channel’s “Sunday Morning Futures,” Trump stated, “April 2nd, it becomes all reciprocal. What they charge us, we charge them.” When asked about the Atlanta Fed’s prediction of an economic downturn in the year’s first quarter, Trump suggested that his policies might influence U.S. economic growth. However, he maintained that these measures would ultimately benefit the United States by stating it would be “great for us.”
When queried about the likelihood of a recession in 2025, Trump expressed reluctance to make predictions, noting, “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 further explained that economic adjustments require time, commenting, “It takes a little time. It takes a little time.”
The previous week on Wall Street was marked by significant volatility, driven largely by economic anxieties and the unpredictability surrounding Trump’s tariff measures. Despite businesses seeking consistency to support their investment strategies, Trump disregarded their worries, asserting that “for years the globalists, the big globalists have been ripping off the United States” and emphasizing, “all we’re doing is getting some of it back, and we’re going to treat our country fairly.”
Trump mentioned that tariffs might increase over time but questioned the notion of predictability, noting, “You know, 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,” he stated as a Republican leader.
Recently, Trump had removed tariffs on imports from Mexico and Canada impacting American car manufacturers while retaining them on Chinese goods. Further tariff impositions are expected shortly, with Commerce Secretary Howard Lutnick announcing that 25% tariffs on steel and aluminum imports will commence on Wednesday. Lutnick mentioned that while tariffs on Canadian dairy and lumber are impending, they will be delayed until April.
“Will there be distortions? Of course,” acknowledged Commerce Secretary Lutnick. “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.” This underscores the administration’s viewpoint that the tariffs will advantage domestic producers.
