President Trump refused in an interview broadcast on Sunday to exclude the possibility of his economic policies, including aggressive definitions against trade partners in America, to cause stagnation.
In the interview with Maria Barteromo, the “Sunday Sabah Al -Mustaqbal” host on Fox News, Mr. Trump also said he was considering increasing customs duties against Mexico and Canada. The interview was held on Thursday at the White House.
In reference to “increasing concern about slowdown,” Mrs. Bartopiromo, Mr. Trump, asked: “Do you expect a stagnation this year?”
“I hate to predict things like that,” Mr. Trump answered. “There is a transitional period, because what we do is very big. We return wealth to America. This is a big thing, and there are always periods, it takes some time. It takes some time, but I think it should be great for us.”
Mr. Trump imposed on the overwhelming customs tariffs on Canada, Mexico and China last week that shook stock markets and called for rush from industries, including the largest car manufacturer, Who said to the president The duties would reduce their work. Canada immediately took revenge on the $ 20.5 billion definitions of US exports and threatened additional measures. China also put a tariff on American goods and plans to impose another tour on Monday.
On Thursday, Mr. Trump suddenly reflected his 25 percent definitions on many Canadian and Mexican exports.
But the president is planning more customs tariffs – which increases the possibilities of a global trade war that is economically harmful. On Wednesday, his administration is scheduled to put a 25 percent tariff on all foreign and aluminum steel, which He inspected last month. The president said he expects more fees on April 2, when he plans to impose what he invites “Mutual definitions” To respond to the tariffs of other countries and other trading practices.
Mrs. Bartopirom, Mr. Trump, told business leaders to appreciate certainty: “Public companies want to make sure that we have a clear after April 2, when this mutual tariff enters. Will anything change after that? Will we have clarity?”
“We may go with some definitions. That depends. We may rise. Mr. Trump said:” I don’t think we will go down, or we may start. “” They have a lot of clarity. They just use it. This is almost an audio bite. They always say we want clarity. See, our country has been collapsed for several decades, and we will not start anymore. “
Economists have turned to depression on economic expectations amid the amazing approach of Mr. Trump towards the customs tariff, which has greatly fed the uncertainty and conflicting companies in mind the new investments and employment. Anxiety is that continuous fluctuations reduce this activity further, which increases the already economic slowdown.
With the heading of Mr. Trump’s second state at the White House, the economy had taken revenge on the frequency of more modest growth, and the labor market was cooled and enlarged, although it was still sticky, it was far from its peak in 2022. The economic background is still strong through many standards, but policies such as customs tariffs, deportation and discounts in sharp government spending that are essential in Mr. Trump’s economic agenda Test that flexibility.
For example, definitions are expected to raise daily commodity prices as they also reduce growth as companies and consumers are forced to republish resources and reduce spending anywhere else. High inflation is limited to the degree of amount that the Federal Reserve may be able to support the economy if conditions deteriorate. Currently, the central bank has chosen to maintain interest rates hanging at 4.25 percent to 4.5 percent.
Repeat Jerome H. Powell, Chairman of the Federal Reserve, on Friday that the Federal Reserve was Not in “Hurry” To reduce interest rates because the economy has been in good condition, but it recognized the potential sabotage nature of Mr. Trump’s plans, especially on inflation.
Fad growth, along with high prices, neglects fears of stagnation, a poisonous group that would put the federal reserve in a more difficult position.
In an interview on Friday, Austan Diosby, head of the Federal Reserve in Chicago and a voting member for this year’s policy -making committee, said that such a dynamic was increasingly “on the radar screen”, especially when he heard from companies in his area that they were struggling with the “cold caused by uncertainty”.
Speaking in Meet The Press on Sunday, Howard Lottenic, Minister of Commerce, said the definitions will help “develop our economy in a way that we have not been thrown before.”
In response to a question about banks’ expectations such as JP Morgan and Goldman Sachs, who say the recession in the next 12 months has become more likely, Mr. Lutnick said that the Americans should not prepare for stagnation.
He said, “I will never bet on the recession.” “No chance.”
Mr. Lootnick claimed that the Trump administration’s efforts to reduce government deficit will lead to low interest rates, while drilling more oil will also lead to a low energy price. He admitted that the definitions could increase the price of foreign goods, but he said that local goods will become cheaper.
Many economists have expressed other views, saying that the definitions of foreign products can help us to become more profitable companies by giving them space to raise their prices as well.
“Foreign goods may become a little more expensive,” said Mr. Lottennik. “But American goods will become cheaper, and will help Americans by buying Americans.”
