Trump Defends Tariffs Despite Econ. Risks, Hints at Recession Possibility/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Donald Trump confirmed that 25% reciprocal tariffs will take effect on April 2, despite business concerns and market volatility. He dismissed worries about economic uncertainty, calling the tariffs part of a “transition period” to bring wealth back to America. The Atlanta Fed predicts a potential Q1 economic contraction, but Trump insists the policy will be beneficial long-term. Meanwhile, Commerce Secretary Howard Lutnick confirmed new steel and aluminum tariffs begin Wednesday, with Canadian dairy and lumber tariffs delayed until April. As markets react to trade uncertainty, businesses remain concerned about rising costs and recession risks.
Trump on Tariffs and Economy: Quick Looks
- Trump confirms 25% reciprocal tariffs start April 2, despite business concerns.
- Stock markets react with volatility, as businesses warn of economic uncertainty.
- Trump acknowledges possible short-term economic contraction, calls it a “transition period.”
- Atlanta Fed predicts a shrinking economy in Q1, while Trump insists tariffs will be “great for America.”
- Commerce Secretary confirms tariffs on steel and aluminum start Wednesday, with Canadian dairy and lumber tariffs delayed until April.
- Trump claims globalists have been “ripping off” the U.S. for years and vows to rebalance trade.
Deep Look: Trump Downplays Economic Concerns as Tariffs Set to Rise April 2
Trump Dismisses Business Worries Over Tariffs
Despite growing concern from U.S. businesses and financial markets, President Donald Trump remains unapologetic about his aggressive tariff policies, insisting they are necessary to restore economic fairness.
- 25% tariffs on imports from Mexico and Canada were imposed, then temporarily paused, creating market uncertainty.
- Trump now confirms that “reciprocal” tariffs will take full effect April 2, saying: “April 2nd, it becomes all reciprocal. What they charge us, we charge them.”
Recession Fears Grow as Fed Predicts Contraction
When asked about the Atlanta Federal Reserve’s warning of a potential economic contraction in Q1, Trump acknowledged that his tariff policies could impact U.S. growth, but claimed they would ultimately benefit the country.
“There is a period of transition because what we’re doing is very big. We’re bringing wealth back to America,” Trump told Fox News.
While stopping short of predicting a recession, Trump admitted:
“It takes a little time. It takes a little time.”
Markets React as Businesses Seek Stability
Wall Street has seen wild stock swings as businesses struggle to navigate trade uncertainty. Despite this, Trump dismissed concerns, blaming “globalists” for exploiting the U.S. economy for years.
“All we’re doing is getting some of it back, and we’re going to treat our country fairly,” he said.
Trump also suggested tariffs could rise further over time, leaving businesses without clear long-term trade expectations.
Steel and Aluminum Tariffs Set for Wednesday
While some tariffs have been temporarily lifted, Commerce Secretary Howard Lutnick confirmed on NBC’s “Meet the Press” that:
- New 25% tariffs on steel and aluminum imports will take effect Wednesday.
- Canadian dairy and lumber tariffs will be delayed until April.
“Foreign goods may get a little more expensive,” Lutnick admitted. “But American goods are going to get cheaper.”
What’s Next?
With uncertainty mounting, business leaders and economists remain skeptical about Trump’s tariff strategy. The coming weeks will test whether his trade policies strengthen or weaken the U.S. economy, particularly as tariff-driven inflation and supply chain disruptions loom.
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