March 10, 2025 11:36 am
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Trade War Intensifies: US Economy Faces Threat of Contraction, Says Trump

US President Donald Trump stated that the country is undergoing a transitional phase, as significant steps are being taken to bring resources back to America. He made this remark on March 9, 2025, after some policy changes by his administration. However, he denied predicting a recession in the US economy this year.

Trump’s trade policy changes have led to instability in the US market. Additionally, China has imposed new tariffs on its agricultural products, which could impact American farmers.

When asked about the possibility of a recession, Trump referred to it as a “period of contraction.” Commerce Secretary Howard Lutnick emphasized that there would be no contraction in the world’s largest economy, although he acknowledged that new “counter-tariff” policies might lead to higher prices on certain goods. However, he expects these measures to be beneficial for the US in the long run.

In response to the tariffs imposed by the US, Canada and Mexico have implemented their own retaliatory tariffs, which will take effect on Monday, further complicating trade relations in North America.

Trump expressed confidence in his policies, stating that they would bring long-term benefits to the US economy, even though the transition period might take some time.

Recently, the US imposed a 25% tariff on imports from Mexico and Canada but reversed many of these tariffs after two days. Starting Monday, some US agricultural products, including chicken, beef, pork, wheat, and soybeans, will face new tariffs ranging from 10 to 15% when entering China.

Trump also doubled tariffs on Chinese imports to 20%, and in retaliation, Beijing announced tariffs on some American agricultural products. Experts believe that both the US and China are unlikely to back down from the trade confrontation.

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