Economic Uncertainly looms as Trump doesn’t dismiss Recession fears

President Trump declined to rule out that the U.S. economy would contract this year and enter a recession, saying that his sweeping economic agenda could cause short-term turbulence that he believed would drive future prosperity.

When questioned whether he was expecting a recession in 2025, Trump responded: “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.”

Trump brushed aside concerns from businesses seeking stability as they make investment decisions. He said that “for years the globalists, the big globalists have been ripping off the United States” and that now, “all we’re doing is getting some of it back, and we’re going to treat our country fairly.”

“You know, the tariffs could go up as time goes by, and they may go up and, you know, I don’t know if it’s predictability,” Mr Trump said. It appears that the President is keeping his options open with respect to tariffs. And it appears that Trump is ok with short term difficulties on the way to accomplish his long term goals.

Continuing course even if it leads to a possible recession, which would burn almost, if not all, of his political capital, indicates that President Trump is not having any second thoughts about his course of actions, and is going all in.

It is also possible that if it looks like his tariffs are leading the economy into a recession, Mr Trump will pull back, but he doesn’t want to show his cards right now. He wants other countries to believe that he is willing to feel a small recession, and factor that into their calculus.

But as we all know, President Donald Trump is extremely unpredictable. Any and all things, on an economic and geopolitical scale, are possible over the next few years.