Trump dismisses recession fears, says ‘I hate to predict that’ amid trade war
US President Donald Trump dismissed fears of a recession but admitted his trade policies might cause short-term instability. Speaking on Fox News’ Sunday Morning Futures, he defended his tariff strategy while sidestepping concerns about economic downturns.
“What We’re Doing Is Very Big”
Fox News host Maria Bartiromo asked Trump about a possible recession. He avoided a direct answer, saying, “I hate to predict things like that.” Instead, he called the current economic state a “transition.”
“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. And there are always periods of… it takes a little time. But I think it should be great for us.”
His comments came after the Federal Reserve Bank of Atlanta warned that the US economy could shrink in the first quarter. Despite this, Commerce Secretary Howard Lutnick rejected recession fears on NBC’s Meet the Press, saying, “Absolutely not. There’s going to be no recession in America.”
“You Have to Do What’s Right”
Trump’s trade war introduced steep tariffs on imports from Canada, Mexico, and China. These measures created uncertainty in global markets. When asked whether tariffs could drive inflation, he responded, “You may get it. In the meantime, guess what? Interest rates are down.”
Trump often takes credit when stock markets rise but downplayed recent volatility triggered by his trade policies. “You have to do what’s right,” he said.
A “Mess” or a Stable Economy?
Bartiromo framed the discussion by saying, “Look, I know you inherited a mess.” However, many economists argue that Trump took office with a stable economy under his Democratic predecessor, Joe Biden. Inflation, while high at times, had been declining, and international trade relations remained steady.
Trump’s remarks contradict his 2018 claim on X that “trade wars are good, and easy to win.” Many economists dispute that statement. As markets react to his unpredictable approach, the coming months will reveal whether his confidence holds or if the US economy faces a downturn.
