United States President Donald Trump has declined to say if the US economy faces a recession or increases the price due to the flip of his administration due to tariff threats against some of his nearest commercial partners.
Asked if he was waiting for a recession this year, Trump said there was a « transition period ».
The Secretary of Commerce, Howard Lutnick, however, insisted that there would be no contraction in the world’s largest economy, while also recognizing that the price of some assets could increase.
It occurs after a volatile week for US financial markets, as investors faced the uncertainty of the turn of their administration in some key parts of their aggressive commercial policies.
On Monday, the new Tit-Perth of China, which led some agricultural products in the United States, came into force.
Speaking to Fox News in an interview issued on Sunday, but he recorded Thursday, Trump answered a question about a recession: « I hate predicting things like this. There is a transition period because what we do is very big. We return to wealth in America. This is an important thing. »
« It takes a while, but I think it should be great for us, » said Trump.
Last week, the United States imposed new 25% rates on Mexico and Canada imports, but then exempt many of these goods only two days later.
Trump also doubled a blanket rate on China goods at 20%. In response, Beijing announced taxes on retaliation about some imports of U.S. agricultural goods.
As of today, some farm products in the United States that enter China, including chicken, beef, pork, wheat and soy, face new rates of 10 to 15%.
The President of the United States has accused China, Mexico and Canada of not doing enough to end the flow of drugs and illegal migrants in the United States. The three countries have rejected the allegations.
Inventories in Wall Street have fallen since Trump has caused a trade war with the main trade partners in the United States.
Investor’s rates fear that the rates will entail higher prices and, finally, the growth of the largest economy in the world.
Speaking on Sunday, Lutnick said: « Foreign goods can be a bit more expensive. But North -American goods will become cheaper. »
But when asked if the US economy could face a recession, Lutnick added: « Absolutely not … there will be no recession in America. »
Frank Lavin, a former United States Department of Commerce Department, told the BBC that he believes that the trade war is unlikely not to warm out of control.
The rates will end up « fading a little », but it is still an « additional burden for the United States economy, » he said.
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