Trump says the US economy in the “transition” as the trade war escalated

US President Donald Trump has refused to say whether the US economy is facing a recession or an increase in prices due to the tissue of its administration from the tariff threats against some of its closest trading partners.

Asked if he was expecting a recession this year, Trump said a “transition period” was being held.

Trade secretary, however, has insisted that there will be no contraction in the largest economy in the world, while admitting that the price of some goods may rise.

This comes after a variable week for the US Financial Markets, as investors have encountered uncertainty about the opposite turn of its administration in some key parts of its aggressive commercial policies.

The new tariffs for Tito-Za-Ta from China, which are aimed at some American economic products, came into force on Monday.

Speaking to Fox News in an interview broadcast on Sunday, but recorded on Thursday, Trump answered a question about a recession: “I hate to predict such things. There is a period of transition because what we do is very great. We bring back the wealth in America. This is a big thing.”

“It takes a little time, but I think it should be great for us,” Trump added.

Last week, the United States imposed another 25% import tariffs from Mexico and Canada, but then released many of these goods only two days later.

Trump also doubled the blanket for goods from China up to 20%. In response, Beijing announced retaliatory taxes on some of the US agricultural goods.

As of today, certain American agricultural products that enter China – including chicken, beef, pork, wheat and soy – face new rates of 10 to 15%.

The US president has accused China, Mexico and Canada of not doing enough to end the flow of illegal drugs and migrants in the United States. The three countries dismissed the allegations.

Wall Street shares have fallen since Trump has sparked a trade war with the best US trading partners.

Investors are afraid of tariffs that will lead to higher prices and ultimately growth in the biggest economy in the world.

Speaking on NBC on Sunday, Luni said: “Foreign goods can be a little more expensive. But American goods will become more expensive. “

But the question of whether the American economy could encounter a recession that Lutin added, “Absolutely not … There will be no recession in America.”

Former US Trade Department official Frank Lavin told the BBC that he believes the trade war is unlikely to escalate out of control.

Tariffs will eventually “fade a little”, but they will still be “an additional weight for the US economy,” he said.