Trump says the US economy is in “transition” when the trade war is increasing

US President Donald Trump has refused to say whether he was facing a recession or raising prices after his administration rejecting a public threat against some of his closest trading partners.

Asked if he was waiting for the recession this year, Trump said that the “transition period” was happening.

However, the secretary of trade Howard Lutnik insisted that there would be no reduction in the world’s largest economy, recognizing that the price of some goods could rise.

This happens after a changing week for US financial markets when investors fought with the turn of its administration on some key parts of their aggressive trade policy.

New Tit-TAT rates from China, which focus on some American farmers, come into force on Monday.

Speaking in front of Fox News in an interview broadcast on Sunday, but recorded on Thursday, Trump answered a question about the recession: “I really like to predict such things. There is a transition period because what we do is very big. We return wealth to America. It’s a big deal.”

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

Last week, the United States imposed steep new 25% of Mexico and Canada import tariffs, but then released many of these goods only two days later.

Trump also doubled the tariff for the goods from China to 20%. In response, Beijing announced return taxes on some imports of agricultural goods from the United States.

He accused China, Mexico and Canada not enough to stop the flow of illegal drugs and migrants in the US. Three countries dismissed the allegations.

Wall -Rate reserves have fallen since Trump has caused trading war with the best US trading partners.

Investors are afraid that tariffs will increase prices and ultimately DETS growth in the world’s largest economy.

Speaking at NBC on Sunday, Lutnik said: “Foreign goods can become a little more. But American goods will be cheaper.”

But when asked if the American economy can face the recession, which Lutnik added: “Absolutely not … in America there will be no recession.”