Donald Trump on Recession Fears: Tariffs Shake Markets.
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United States President Donald Trump has refused to rule out the possibility of an economic recession as market concerns grow over his “America First” trade policies. With mounting fears of a slowdown, investors are closely watching the impact of new tariffs and economic uncertainty on the world’s largest economy.
Donald Trump on Recession: ‘A Period of Transition’
In an interview with Fox News’ Sunday Morning Futures, Donal Trump dodged the question of whether the U.S. economy is heading for a downturn in 2025. “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,” Trump stated.
The president remained optimistic despite the uncertainty, adding, “It takes a little time, but I think it should be great for us.”
Donald Trump Tariffs Stir Market Volatility
Market jitters have intensified following Donald Trump recent tariff hikes. Last week, the president imposed a 25% tariff on imports from Mexico and Canada, while also doubling tariffs on Chinese goods to 20%. However, just 48 hours later, he postponed some of these tariffs until April 2, causing further confusion among investors.
The uncertainty sent the S&P 500 tumbling more than 3% last week, marking its worst performance since September. Economic analysts are now reassessing the likelihood of a recession as fears of a slowdown grow.
Economic Forecasts Paint a Mixed Picture
On Thursday, the Atlanta Federal Reserve slashed its GDP growth forecast for Q1, shifting from a 2.3% expansion to a 2.4% contraction. Meanwhile, Goldman Sachs increased the probability of a recession in the next 12 months from 15% to 20%.
Despite these concerns, the U.S. job market remains resilient. The Bureau of Labor Statistics reported the addition of 151,000 jobs in January—slightly below economists’ expectations but aligned with the 2024 average.
Commerce Secretary Denies Recession Fears
Speaking on NBC’s Meet the Press, U.S. Commerce Secretary Howard Lutnick dismissed recession concerns. “Donald Trump is a winner. He’s going to win for the American people. That’s just the way it’s going to be,” Lutnick asserted.
“There’s going to be no recession in America. I would never bet on a recession,” he added. “No chance.”
What’s Next for the U.S. Economy?
As Donald Trump trade policies continue to impact global markets, investors and analysts remain divided on the economic outlook. While job growth and consumer spending signal strength, tariff uncertainty and market volatility raise concerns about a possible downturn.
With 2025 unfolding as a critical year for the U.S. economy, businesses, investors, and consumers alike are bracing for what’s to come. Stay tuned as we track the latest economic trends and market movements.
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