The President of the United States, Donald Trump, has acknowledged that the country could face a "transition period" economically as a result of the trade war he has initiated against various global powers, but he promises that -once this phase is over- in the end, the U.S. will have so much money that they won't even know what to do with it.
In an interview granted to Fox News last weekend, when asked “Are you expecting a recession this year?”, Trump replied:
"I hate predicting things like this. There is a transition period because what we are doing is very substantial... It takes some time, it takes some time."
Nevertheless, while acknowledging the possibility of a temporary recession, he insisted that the long-term benefits will justify the current sacrifices.
"We are bringing wealth back to the U.S." , he pointed out.
Trump's statements come at a time of economic uncertainty in the U.S., as the Federal Reserve has warned about rising prices in certain sectors due to the imposition of tariffs.
On his return journey to Washington from Mar-a-Lago aboard Air Force One, the president reaffirmed his stance on U.S. trade policy.
“The only thing I know is this: We are going to accept tariffs worth hundreds of billions of dollars and we will become so rich that we won’t know where to spend that money. I assure you, just watch. We will have jobs, factories open,” he declared.
However, it has been a challenging start to the week for the U.S. economy, as on Monday Wall Street experienced a significant stock market crash that raised alarms.
The words of the U.S. president have raised concerns in the markets and among economic analysts, who fear that the trade war launched by his administration against China, Canada, Mexico, and the European Union may have adverse effects on the country's economic growth.
Meanwhile, in Canada, nationalist and anti-American sentiment has surged. Canadians announced a 25 percent tariff on all kinds of American products and have even withdrawn some from sale.
The situation of the Hispanic community, on the other hand, is becoming critical, as the stress associated with increasing deportations or threats of deportation is compounded by rising food and electricity prices, which will continue to rise.
The White House is trying to ease concerns
The Secretary of Commerce, Howard Lutnick, attempted to dismiss any possibility of recession.
In an interview with NBC, Lutnick stated: "There will be no recession in the U.S. Global tariffs are going to decrease because President Trump has said: If you want to impose 100% on us, we will impose 100% on you."
However, despite the White House's attempts to calm tensions, Trump himself has acknowledged that the tariff policy may require adjustments to mitigate its impact on American consumers.
"Other countries are cheating us, but if it is necessary to make small adjustments, we will do so," he stated.
"Reciprocal tariffs" and their impact on the economy
In the interview with Fox News, Trump also discussed the impact of "reciprocal tariffs," which will come into effect on April 2nd.
In that regard, Lutnick explained that "some products made overseas may be more expensive, but American products will become cheaper, and that is the goal."
Trump has justified his measures by arguing that his goal is to revitalize the national economy.
However, it also left open the possibility of adjustments to tariffs in the automotive sector, which have been temporarily paused to benefit American manufacturers.
"I gave them a little break, but the burdens may rise later," he warned.
A long-term perspective in the Chinese style
One of the most striking points of his intervention was his comparison with China's economic policy.
"If you look at China, they have a 100-year perspective. We operate in quarters, and it can't be done that way; we need to do what’s right," he said.
With these statements, Trump suggests that his economic approach is not based on immediate results, but rather on a long-term plan that, according to him, will bring prosperity to the country.
However, analysts are concerned about how the markets may react and whether the trade strategy of the administration will have the desired effects or, on the contrary, generate economic instability.
Frequently Asked Questions About Trump's Tariff Policy and Its Economic Impact
Is the United States facing an economic recession due to Trump's tariff policy?
Donald Trump has acknowledged the possibility of an economic "transition period" due to trade tensions with powers like China, Canada, Mexico, and the European Union. Although the president insists that the long-term benefits of his tariff policy will outweigh the current sacrifices, the uncertainty has raised concerns in the markets and among economic analysts.
How will Trump's tariffs affect product prices in the U.S.?
Despite Trump dismissing concerns about the impact of tariffs on prices, experts warn that tariffs generally lead to a rise in prices in the domestic market. This could affect everything from agricultural products to imported vehicles, which would increase costs for American consumers.
What are the geopolitical repercussions of Trump's tariff policy?
Trump's tariff policy has strained trade relations with several international partners, provoking retaliation from countries such as Canada, Mexico, and the European Union. These tensions could trigger a global trade war, impacting not only the economies involved but also the diplomatic relationships between the countries.
What impact do tariffs have on the Hispanic community in the United States?
The Hispanic community in the U.S. is facing a critical situation due to the
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