U.S. President Trump stated that tariffs originally planned to be imposed on certain goods from Canada and Mexico on April 2nd "may be increased," and he was unwilling to predict whether the U.S. economy would experience a recession this year.
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03-10, 2025In an interview aired on Fox News' "Sunday Morning Futures with Maria Bartiromo," Trump said that the reciprocal tariffs, scheduled to take effect on April 2nd, were only a "slight easing" to give Mexico and Canada a month's reprieve. Last month, Trump announced a 25% tariff on the U.S.'s neighbors, but then delayed it for a month. It was set to begin on Tuesday, until Trump decided last Wednesday to again pause tariffs on automakers for a month. On Thursday, he reversed course again, suspending tariffs on goods from Mexico and Canada covered by the USMCA free trade agreement until April.
Trump stated, "This is a transition to April, after which I won't do it anymore. I told [the automakers], 'Look, I'll do it this time.'" However, Trump has been constantly revising his tariff plans. Last Friday, he threatened to impose new tariffs on Canadian lumber and dairy products, which could take effect as early as Monday.
Following Trump's announcement of the latest one-month suspension of most tariffs, Mexican President Claudia Sheinbaum decided to postpone the implementation of retaliatory tariffs. Canadian Prime Minister Justin Trudeau stated that Canada's retaliatory measures would remain in effect. But Trudeau said last Thursday that these policies could spark a trade war between Canada and the U.S. in the foreseeable future.
Meanwhile, U.S. Commerce Secretary Howard Lutnick confirmed on NBC's "Meet the Press" that Trump's promised 25% tariff on steel and aluminum imports would take effect on Wednesday, and tariffs on Canadian dairy and lumber products would "begin on April 2nd." Lutnick stated that the tariffs taking effect on April 2nd would last until Trump was "satisfied" with how the two countries were handling the flow of fentanyl. The Trump administration claims Canada is a "major source" of fentanyl imports, even though Canada accounts for only 0.2% of the drug illegally imported into the U.S.
Trade tensions and signs of slowing economic growth have led to concerns that a recession may be imminent. When Bartiromo asked him if he expected a recession this year, Trump said, "I don't like to predict things like that. It's a transition period right now because what we're doing is so massive." Trump added that the transition "takes a little time" and "ultimately it's going to be great for the farmers."
The latest consumer survey from the Conference Board, a U.S. research organization, showed that the percentage of respondents expecting a recession in the next year jumped to a nine-month high last month. Moody's chief economist Mark Zandi told CNN, "The changes that have occurred under Trump are arguably unprecedented, and it makes people very nervous. If confidence continues to decline in the next three months, and consumers actually give up, it's over."
