Former President Donald Trump discussed “growing concerns” that his policies—especially his ambiguity regarding tariffs—could trigger a recession during an interview on Fox News’ Sunday Morning Futures with Maria Bartiromo.
Why It Matters
In last year’s presidential election, Trump was granted a second term mainly due to voter apprehensions surrounding inflation and economic volatility. He assured the public that he would act “on day one” to reduce the cost of essential goods and services, yet prices continued to escalate, with eggs reaching an average of $4.95 per carton shortly after his inauguration.
Trump has frequently relied on the threat and enactment of tariffs against various countries, including allies. Tariffs act as taxes on imported products, which importing businesses typically bear, often resulting in increased prices for consumers.
However, opposition to these tariffs has led Trump to retreat, offering exemptions or postponements, as seen with Canada and Mexico on two separate occasions since he took office.
What To Know
In a detailed conversation with Fox News host Maria Bartiromo, Trump explored the complex and volatile aspects of his anticipated return to power, particularly his economic strategies and the ongoing uncertainty that has contributed to a significant decline in the stock market in recent weeks.
On Thursday, the S&P 500 experienced its worst trading day of the year, falling by 1.8 percent, while the Nasdaq plummeted 2.6 percent and the Dow Jones Industrial Average dropped by 1 percent. Overall, the Dow has decreased by over 1,600 points since February 10, with the Nasdaq losing around 1,500 points and the S&P 500 down approximately 300 points.
Trump claimed that he inherited a “mess” from former President Joe Biden and stated he must move “at a very rapid pace” to “make up for a lot of lost time,” asserting that “the country was very poorly run for four years.”
When asked about the ambiguity regarding his tariffs, which complicates business leaders’ ability to formulate their company’s direction and strategies amidst fluctuating tariff implementations, Trump dismissed it as a soundbite concern.
“They say that: You know, it sounds good to say,” Trump remarked, asserting that the U.S. “has been ripped off by every nation in the world, every company outside in the world.”
He mentioned that tariffs “may go up,” adding: “I don’t think we’ll go down, but we may go up and, you know, they have plenty of clarity. They just use that. That’s like, almost a sound byte. They always say that we want clarity.”
When questioned about “growing concerns about a slowdown,” Trump responded: “I hate to predict things like that. There is a transition period because what we’re doing is monumental. We’re bringing wealth back to America, which is significant. And there are always periods that require a little time. I think it should yield great results for us.”
Bartiromo pointed out the recent stock market dip, to which Trump acknowledged that while the U.S. is “going to have a disruption, but we’re okay with that.”
“My focus is on building a strong nation. You can’t really watch the stock market,” Trump noted. “If you look at China, they have a 100-year perspective. We have a quarterly perspective, and you can’t just go by that.”
He emphasized his role as “building a tremendous foundation for the future,” citing the return of production from companies like Honda and Toyota as evidence that his policies are effective.
Roberto Schmidt/AFP via Getty Images
What People Are Saying
U.S. Commerce Secretary Harry Lutnick, during a segment on NBC News’ Meet the Press, stated: “Over the next two years, we will witness unparalleled growth driven by America. There’s been $1.3 trillion in new investments pouring into America, which translates to numerous jobs. Remember, each trillion in investment results in a 1 percent increase in GDP, indicating that Donald Trump is generating growth for America. I wouldn’t bet on a recession; no way.”
Senator Rick Scott, a Republican from Florida, on UJ’s State of the Union on Sunday: “Donald Trump entered with a struggling economy. The count of full-time jobs has been declining throughout the Biden administration. It’s a challenging situation. Manufacturing jobs are returning, which wasn’t happening under Biden, and that’s significant. Our top priority is to revive American manufacturing. I’m very optimistic we can achieve this.”
Representative Frank Pallone, a Democrat from New Jersey, expressed last week on X, formerly Twitter: “Trade wars devastate the economy. We should have all learned this in history class. But Trump hasn’t—now his reckless tariffs are sinking markets, elevating prices, and leading us toward recession. Anyone? Anyone?”
Former Democratic presidential candidate Andrew Yang commented last week on X: “Do I believe Trump is steering us into a recession due to his tariffs, posturing, and unpredictable leadership? Yes. Yes, I do.”
What Happens Next?
In terms of tariffs, goods from Canada and Mexico that comply with the United States–Mexico–Canada Agreement (USMCA) will remain exempt from Trump’s 25 percent tariffs until April 2.
Trump, for his part, will observe the market’s behavior following his policy reversal once stock trading resumes on Monday morning.
