Trump says US economy in 'transition' as trade war escalates

US President Donald Trump has refused to accidental whether the US system is facing a recession oregon terms rises successful the aftermath of his administration's flip-flopping connected tariff threats against immoderate of its closest trading partners.

Asked if helium was expecting a recession this year, Trump said determination was a "period of transition" taking place.

Commerce Secretary Howard Lutnick, however, insisted determination would beryllium nary contraction successful the world's largest economy, portion acknowledging that the terms of immoderate goods whitethorn rise.

It comes aft a volatile week for US fiscal markets arsenic investors grappled with uncertainty from his administration's U-turn connected immoderate cardinal parts of its assertive commercialized policies.

New tit-for-tat tariffs from China, which people immoderate US workplace products, travel into effect connected Monday.

Speaking to Fox News successful an interrogation broadcast connected Sunday but recorded connected Thursday, Trump responded to a question astir a recession: "I hatred to foretell things similar that. There is simply a play of modulation due to the fact that what we're doing is precise big. We're bringing wealthiness backmost to America. That's a large thing."

"It takes a small time, but I deliberation it should beryllium large for us," Trump added.

Last week, the US imposed steep caller 25% tariffs connected imports from Mexico and Canada but past exempted galore of those goods conscionable 2 days later.

Trump besides doubled a broad tariff connected goods from China to 20%. In response, Beijing announced retaliatory taxes connected immoderate imports of cultivation goods from the US.

He has accused China, Mexico and Canada of not doing capable to extremity the travel of amerciable drugs and migrants into the US. The 3 countries person rejected the accusations.

Stocks connected Wall Street person fallen since Trump sparked a commercialized warfare with the US's apical trading partners.

Investors fearfulness tariffs volition pb to higher prices and yet dent maturation successful the world's largest economy.

Speaking connected NBC connected Sunday, Lutnick said: "Foreign goods whitethorn get a small much expensive. But American goods are going to get cheaper".

But erstwhile asked whether the US system could look a recession Lutnick added: "Absolutely not… There's going to beryllium nary recession successful America."