Donald Trump’s vision of bringing America’s golden age back remains uncertain at this point. While Trump’s administration chooses to wake up to announce decisions amidst the ongoing tensions of trade tariff conflicts and inflation news, new reports suggest several new claims.
According to Financial Express, Trump’s proposed tariff policies include a 5% tax on goods from Canada and Mexico and a 20% tax on Chinese imports. Former Canadian Prime Minister Justin Trudeau said this long tariff conflict could lead to nasty trade wars. Meanwhile, in his address to Congress last week, Trump also discussed imposing standard tariffs against India and China starting next month.
While Trump believes tariffs are important to protect enterprises and employees, the truth may be more tricky. Higher tariffs generally lead to higher prices, meaning standard commodities like electronics, gasoline, and food could become more expensive. This phenomenon, aka inflation, has affected ordinary citizens in the country.
In addition, as per The Loadstar, even U.S. farmers seem to be at risk. A ban on US meat exports from two locations has disrupted shipments to China, forcing US exporters to seek alternative routes. The ban was imposed due to the discovery of traces of ractopamine, a feed additive prohibited in over 150 countries.
Meanwhile, as per The Irish Star, in an interview with Fox News on Sunday, Trump admitted that his economic policies might take time to show results. He also did not rule out the chance of a recession in 2025 when asked about it due to the country’s uncertain economic state.
“I hate to predict things like that. There is a period of transition because what we’re doing is very big. We’re bringing wealth back to America. That’s a big thing. And there are always periods of, it takes a little time. It takes a little time, but I think it should be great for us.” the 78-year-old added.
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This prediction seems scary to most citizens. The CNBC report says that higher prices and slow economic growth (stagflation) will significantly impact business owners, policymakers, and investors who invested large amounts of money and time in stocks and bonds.
However, US Commerce Secretary Howard Lutnick disagreed with the recession concerns, stating, “Absolutely not. There’s going to be no recession in America.” Lutnick reportedly supported Trump and claimed that anyone who stood against Trump’s ideas and administration was the same one who better that he wouldn’t win a presidential seat during the campaign in 2024.
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“I would never bet on recession; there’s no chance,” he added. Howard Lutnick’s comments come as reports suggest that the Federal Reserve might have to intervene if the economy shrinks in the first quarter. Stay tuned for further updates on this hot topic as we inform you of the latest news on Trump’s tariff policies at your fingertips.
