Trump says US economy in ‘transition’ as trade war escalates happymamay

US President Donald Trump refused to say whether the American economy is facing stagnation or prices raised in the wake of his administration’s fluctuation on tariff threats against some of its closest commercial partners.

When asked if he expected a stagnation this year, Trump said that there was a “transitional period” that occurred.

However, Trade Minister Howard Lootnick insisted that there will be no shrinkage in the world’s largest economy, while admitting that the price of some goods may rise.

This comes after a volatile week for the US financial markets, as investors wrestle with uncertainty about the rotation of his administration in some of the main parts of its aggressive commercial policies.

The new customs tariff against China, targeting some American agricultural products, entered into force on Monday.

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

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

Last week, the United States imposed a 25 % new tariff on imports from Mexico and Canada, but then gave many of these goods after only two days.

Trump also doubled a blanket tariff on the goods from China to 20 %. In response, Beijing has announced retaliatory taxes on some imports of agricultural commodities from the United States.

China, Mexico and Canada have been accused of not doing enough to end the flow of illegal drugs and migrants to the United States. The three countries rejected these accusations.

The stocks have decreased in Wall Street since Trump has ignited a trade war with the best trade partners in the United States.

Fear of investors fear that the customs tariff will lead to high prices and eventually growth in the world’s largest economy.

Speaking at NBC on Sunday, Lootnick said: “Foreign goods may become a little more expensive. But American goods will become cheaper.”

But when asked if the American economy had been facing stagnation, Lottenic added: “Certainly no … there will be no stagnation in America.”

Frank Lavin, former US Trade Ministry official, Frank Lavin, told the BBC that he believed the trade war is unlikely to escalate outside the scope of control.

He said that the customs tariff “will fade a little”, but it is still “an additional burden on the American economy.”