President Donald Trump said he believes a recession is unlikely and downplayed concerns about the impact tariffs may have on the U.S. economy.
Trump said that he personally is not worried about the possibility of a recession but noted that “anything can happen.”
“But I think we’re going to have the greatest economy in the history of our country,” he said.
“You say, ‘Some people on Wall Street say.' Well, I’ll tell you something else: Some people on Wall Street say that we’re going to have the greatest economy in history. Why don’t you talk about them? Because some people on Wall Street say this is the greatest thing that ever happened.”
In April, Trump announced 10 percent baseline tariffs on all U.S. trading partners and also imposed higher, reciprocal tariffs on countries that do more significant trade with the United States. A week later, Trump paused the higher tariffs for 90 days but raised duties on China to 145 percent.
His administration has also imposed 25 percent tariffs on autos, steel, and aluminum as well as 25 percent tariffs on Canada and Mexico. The tariffs on Mexico and Canada, Trump has said, are part of negotiations to have both countries improve their border security and end the trafficking of fentanyl into the United States.
Trump’s administration is negotiating with dozens of countries for trade deals that could avert the higher tariffs, officials have said.
During the interview with NBC News, Trump declined to rule out making some tariffs permanent.
“No, I wouldn’t do that because if somebody thought they were going to come off the table, why would they build in the United States?” he said.
Regarding tariffs on Chinese products, Trump said, “We don’t have to waste money on a trade deficit with China for things we don’t need, for junk that we don’t need.”
He then listed products that he said he thinks people do not need, such as large quantities of cheaply produced children’s toys.
Later in the interview, Trump suggested that prices on some products “might” increase but said that lower energy prices will be extended to consumers.
“Gasoline is thousands of times more important than a stroller,” he said.
“You don’t need to have, as I said, 35 dolls,” he added.
“We’ve gone cold turkey,” he said of trade with China. “That means we’re not losing a trillion dollars ... because we’re not doing business with them right now. And they want to make a deal. They want to make a deal very badly. We'll see how that all turns out, but it’s got to be a fair deal.”
Also in the media appearance, Trump was asked about recent comments he made about Federal Reserve Chairman Jerome Powell. In April, Trump wrote on social media that he believes Powell should either lower interest rates or step down.
“Well, he should lower them. And at some point, he will. He'd rather not because he’s not a fan of mine,” he said.
When asked if he would remove Powell before his term as chair ends in 2026, Trump said: “No, no, no. That was a total ... why would I do that? I get to replace the person in another short period of time.”
