President Donald Trump has refused to dismiss the possibility of a U.S. recession as concerns mount over the impact of his administration’s escalating tariffs on global trade and financial markets.
Speaking in a Fox News interview on Sunday, Trump was asked directly whether he believes the country could enter a recession in 2025. “I hate to predict things like that,” he responded. “We are in a period of transition. What we’re doing is bringing wealth back to America, and sometimes, that means short-term adjustments.”
His remarks come amid significant volatility in the stock market, with the Dow Jones Industrial Average losing its post-election gains and the S&P 500 index down nearly 4% since Trump’s second-term inauguration in January. Analysts point to the administration’s new tariffs—particularly on China, Mexico, and Canada—as a driving force behind market uncertainty.
Commerce Secretary Howard Lutnick, however, sought to reassure the public, stating, “There’s going to be no recession in America.” He defended the administration’s trade policies, arguing that “reciprocal tariffs” will ultimately benefit the U.S. economy by addressing long-standing trade imbalances.
BREAKING: U.S. Commerce Secretary
Howard Lutnick says “There’s going to be NO RECESSION in America."
Let's just say I'm saving this clip and expect a resignation before the end of the year when he's proven wrong. pic.twitter.com/fCYCUcrYHr
Despite these reassurances, some economists remain skeptical. Rising consumer costs and inflationary pressures have raised concerns about slowing economic growth. Financial experts warn that prolonged trade disputes could further unsettle markets and weaken business confidence.
As Trump pushes forward with his protectionist trade agenda, businesses, investors, and policymakers remain on edge, waiting to see how the economy will respond in the coming months.