President Trump recently defended his administration’s economic policies following the imposition of tariffs on Mexico and Canada. The president’s decision to roll back some of these tariffs has raised concerns about business certainty and potential impacts on the broader economy.
In an interview, Trump dismissed worries regarding his fluctuating tariff decisions, stating that they “could go up.” When asked about the possibility of a recession during his first year in office, Trump refrained from making predictions. “I hate to predict things like that,” he said. “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 where it takes a little time.”
While some indicators suggest the economy may be heading toward recession, Commerce Secretary Howard Lutnick stated there was “no chance” of one occurring.
Last week, the Trump administration announced a 25% tariff on cars and auto parts from Mexico and Canada, but quickly delayed the implementation after discussions with major automakers, including Ford, Stellantis, and General Motors. Trump explained his decision, saying, “This is short term, and I felt for the good of the American carmakers. I thought it would be a fair thing to do. And so I gave them a little bit of a break for this short period of time.”
Despite criticism from the automotive sector, Sean Fain, president of the United Auto Workers, indicated that the tariffs are a necessary measure to address economic challenges. “Tariffs aren’t the end solution,” he noted, “but they are a huge factor in fixing this problem.”
In the financial markets, the situation has been tumultuous, with the stock market experiencing its worst week in six months. The S&P 500 dropped by 3.1%, while the Nasdaq saw a decline of 3.45%. When questioned about the uncertainty over tariffs and its effects on stock performance, Trump responded, “Well I think so. But you know the tariffs could go up as time goes by and they may go up.”
Looking ahead, Trump affirmed plans to introduce “reciprocal” tariffs against all trading partners that impose tariffs on U.S. goods, set to take effect on April 2nd. “What they charge us, we charge them,” he stated.
