US President’s trade secretary Donald Trump said radical prices On foreign products, it will be worth it, even if they push the American economy in a recession.
Again Howard Libenick told CBS News in an interview broadcast on Tuesday evening that he does not expect a recession Perform, despite an increasing number of economists raising concerns.
“These policies are the most important thing that America has ever had,” he said when asked if a recession was worth the risk.
“It is therefore worth it,” asked interviewer Nancy Cordes in response.
“This is worth it,” replied Lunick, adding quickly: “The only reason he could be a recession is due to the Biden nonsense with which we had to live.”
On Wednesday, JP Morgan’s chief economist told journalists that there were about 40% of American recession this year, against the last official forecasts of the investment bank of around 30%, due to “increased concerns” concerning the economy.
Bruce Kasman said that the risk of recession would increase, probably to 50% or more, if reciprocal rates that Trump threatened to impose from April 2 should enter in force.
“If we continue on this path of what would be more disturbing and unfortunate policies, I think that the risks on this recession front would increase,” said Kasman.
Morgan Stanley and Goldman Sachs also lowered their 2025 economic growth forecasts for the United States last week, Goldman Sachs increasing his own probability of recession to 20%, against 15%. The two banks cited prices in their revised reports.
Lutnick, echoing Trump, blamed previous economic policies and inflation under former American president Joe Biden for the overall slowdown in the financial markets that started last weekWhen prices in Canada and Mexico have entered into force.
Trump has since announced exemptions for North American car manufacturers and other goods that are up to free trade rules and have imposed new universal steel and aluminum tasks that entered on Wednesday, adding additional uncertainty for businesses and investors.
Get national news
For news that has an impact on Canada and worldwide, register for the safeguarding of news alerts that are delivered to you directly when they occur.
Tuesday saw greater volatility after Trump threatened with double steel and 50% aluminum rates For Canada, after Ontario has imposed an electricity export tax sold to American states and exports could be completely cut, only for the two parties to retreat by the end of the day.
Consumer confidence and inflation forecasts have also cooled Since the start of Trump’s trade wars, which said Lunick was Biden’s fault and has not reflected Trump’s decisions.
“I’m sorry that Biden has left us horrible figures,” he said. “I’m sorry that Donald Trump can only repair them when he is in office. You can try to pin them before it is in power, I understand. It is a nonsense.
“Leave Donald Trump’s policies to reign, and you will see at the end of the year the largest set of resurgence and growth and construction in the United States of America.”
Lutnick also rejected questions about a possible recession and risk of inflation in an interview with Fox Business on Wednesday.
“Inflation comes from a government printing too much money,” he said. “You do not get the inflation to have a price, because what a price says is that if it is made in Europe, if it is abroad, it could cost a little more, but what is made in America is not more expensive.”
He said that more steel and aluminum plants would be built in America to meet the domestic demand, but he did not say how long it would take.
On Wednesday, at the White House, Trump postponed the suggestions that his pricing and exempt policies on companies leading to the market turmoil.
“I have the right to adapt,” he said. “I was called by car manufacturers (General Motors, Stellantis and Ford) and they asked me to make them a favor – could I delay it for a period of four weeks so that they were not led in a little disaster for them.
“This is called flexibility.”
Ontario Prime Minister Doug Ford and Federal Finance Minister Dominic Leblanc should go to Washington on Thursday to meet Lodnick and other Trump administration officials at the White House.
Lutnick told Fox that he expects the conversation to be an opportunity to “lower the temperature” with Canada – Language Leblanc also used during journalists alongside Ford in Toronto on Wednesday.
Ford also said he wanted the end of the frantic price.
“I want to know where their bar is going,” he said. “Rather than continuing to move the goal post, I want to know how fast you want to go ahead and see what their requirements are” to renegotiate the Agreement of Mexico States (CUSMA) of Canada-United (CUSMA), which could approach the rate levels.
Lutnick added to Fox that the Trump administration will wait to negotiate with “the rest of Canada” until the next federal election, which could be called quickly after the new Liberal chief Mark Carney is sworn as Prime Minister.
Carney should be sworn in Friday.
Carney told Hamilton on Wednesday that he was ready to meet Trump if he showed “respect for Canadian sovereignty” and is willing to adopt “a common approach, a much more complete approach for trade”.
“We firmly believe that in a world loaded with geopolitical and economic uncertainties, it is not in our common interest to lower our savings with prices,” he said.
– with reuters and Canadian press files
& Copy 2025 Global News, A Division of Corus Entertainment Inc.