Despite the significant decline recorded on Wall Street in recent days, the President of the United States, Donald Trump, dismissed the possibility of the country entering a recession on Tuesday and asserted that, on the contrary, the economy will experience a great boom.
"I don't see it at all. I believe this country is going to experience a great boom," stated Trump in response to a media question at the White House during a Tesla car showcase.
His statements contrast with the uncertainty he generated on Sunday during an interview with Fox News, where he avoided speculating whether his economic measures, characterized by an aggressive tariff policy with his main trading partners - Canada, Mexico, and China - would lead to a recession.
This speech contributed to nervousness in the markets and caused a sharp drop on Wall Street on Monday.
However, the president downplayed the severity of the collapse that economists have already predicted, characterizing it as a "normal movement" within market cycles.
"They will experience downturns, and the markets will rise and fall. But you know what? We need to rebuild our country," he stated.
In the same vein, White House spokesperson Karoline Leavitt noted at a press conference that the stock market decline is merely “a snapshot in time” and does not reflect the overall state of the economy.
The official attributed the phenomenon to a "transition" from what she called the "economic nightmare" of Joe Biden's administration to the "golden age of American manufacturing," promoted by Trump.
The statements come after the major indices on Wall Street recorded their worst day since Trump's return to power.
The S&P 500 fell by 2.7%, the Nasdaq dropped by 4%, and the Dow Jones closed down 890 points, equivalent to a 2.1% decline.
On Tuesday, although the losses were less pronounced, the downward trend continued: the Dow Jones fell by 1.14%, the S&P 500 decreased by 0.75%, and the Nasdaq lost 0.18%.
In that context, Trump continues to blame his predecessor, Joe Biden, for the current inflation: "Biden left us a terrible economy. He left us terrible inflation, and I think the market was doing very, very poorly," he stated.
The president made these statements while supervising the Tesla electric vehicle exhibition alongside the magnate Elon Musk, who is in charge of the Department of Government Efficiency (DOGE) and has faced a national boycott due to his extreme right-wing policies.
During his first term, Trump adjusted his tariff policy following market crashes, but this time he has not shown any signs of backtracking and starting this Wednesday, he will impose a 25% tariff on imports of steel and aluminum from all countries.
The measure particularly affects Canada (which was threatened with an even higher tax of 50% on steel and aluminum imports), Mexico, Brazil, Japan, the United Kingdom, and the European Union.
Frequently asked questions about Trump's statements and the economic impact in the U.S.
What does Donald Trump think about the possibility of a recession in the U.S.?
Donald Trump dismisses the possibility of a recession and asserts that the country will experience a "great economic boom." Despite the recent decline on Wall Street, the president downplays the impact, regarding it as a "normal market movement."
What economic measures is Trump taking that could impact the U.S. economy?
Trump has imposed a 25% tariff on steel and aluminum imports from several countries, including Canada and Mexico. In addition, he has announced tariffs on external agricultural products and has defended his tariff policy as a means to revitalize the national economy, despite concerns about a potential increase in prices.
How has the stock market reacted to Trump's policies?
After Trump's statements and measures, Wall Street experienced a significant drop, with the S&P 500, Nasdaq, and Dow Jones recording substantial losses. However, Trump has downplayed these declines and attributes the situation to a period of economic transition.
What is the impact of Trump's tariffs on international trade relations?
The tariffs imposed by Trump have generated tensions in the trade relations of the U.S. with several countries, such as Canada, Mexico, and the European Union. These countries have warned of possible retaliation, which could affect international trade and raise prices for products in the U.S.
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