Trump Warns of Recession, Says He Can’t Stop It Amid Trade War Concerns
President Donald Trump acknowledged the possibility of a U.S. recession, stating that it may be unavoidable despite his efforts to strengthen the economy. His comments come as stock market volatility and inflation fears grow due to his aggressive tariff policies on Mexico, Canada, and China over fentanyl.
In an interview with Fox News’ Sunday Morning Futures, Trump was asked directly whether he expected a recession this year. He avoided making a firm prediction but admitted that the country was in a “period of transition” due to his trade policies.
“What we’re doing is very big. We’re bringing wealth back to America,” Trump said. “It takes a little time, but I think it should be great for us.” However, sources close to the administration say Trump has privately indicated that a recession is likely and that he may not be able to prevent it.
Many investors and economists worry that tariffs could stifle economic growth and drive inflation higher. Trump himself acknowledged on February 2 that his sweeping trade measures might cause “short-term pain” for Americans, though his advisers have repeatedly downplayed concerns about a downturn.
“Absolutely not,” Commerce Secretary Howard Lutnick said on Sunday when asked about the risk of a recession. “There’s going to be no recession in America.”
Despite this reassurance, Lutnick admitted that tariffs would lead to higher prices for U.S. consumers on foreign-made goods, though he argued that American-made products would become more competitive.
“He’s not going to step off the gas,” Lutnick said during an appearance on NBC’s Meet the Press.
Last week, Trump imposed a new round of 25% tariffs on imports from Mexico and Canada, as well as additional duties on Chinese goods. He justified the move by accusing the three countries of failing to do enough to curb the flow of fentanyl into the United States.
Just two days later, however, Trump exempted many Mexican and Canadian imports from the tariffs—at least temporarily. The exemptions are set to expire on April 2, at which point Trump has threatened to impose reciprocal tariffs on all U.S. trading partners.
Trump’s unpredictable trade policies have rattled markets and fueled uncertainty about U.S. economic stability. While his administration argues that the tariffs will ultimately benefit American industries, financial experts warn that they could accelerate a recession—one that Trump himself has now admitted may be beyond his control.