Mon, 10 Mar 2025

Mon, 10 Mar 2025 Trump says US economy in 'transition' as trade war escalates

New retaliatory tariffs from China targeting some US farm products came into effect on Monday.
US President Donald Trump has declined to comment on whether the US economy is facing a recession or price rises, citing "a period of transition" due to his administration's trade policies. Commerce Secretary Howard Lutnick stated that there would be no contraction in the world's largest economy, but acknowledged that prices for some goods may rise as a result of tariffs imposed by China on certain US farm products. The US has imposed new tariffs on imports from Mexico and Canada, but later exempted many of those goods. In response, Beijing announced retaliatory taxes on some US agricultural imports. Stocks on Wall Street have fallen since the trade war began, with investors concerned that tariffs will lead to higher prices and ultimately harm economic growth. Lutnick emphasized that "foreign goods may get a little more expensive" but stated that there would be no recession in America. Former Commerce Department official Frank Lavin believes that while tariffs are unlikely to escalate out of control, they will still pose an extra burden on the US economy. The trade war has had far-reaching effects, with countries such as Canada and Mexico facing significant economic impacts due to US tariffs.
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