WASHINGTON — President Donald Trump’s administration continued to push its pro-tariff economic agenda during a press briefing Tuesday, even as the President’s trade war on foreign nations spurred a heightened risk of a U.S. recession.
“The numbers that we see today, the numbers we saw yesterday, the numbers we will see tomorrow are a snapshot of a moment in time,” White House Press Secretary Karoline Leavitt said when asked to assuage fears of an impending recession.
The U.S. stock market saw one of its worst days in years on Monday. The S&P 500, Nasdaq and Dow Jones all plummeted close to their lowest levels since mid-September. Economists and other experts say the likely causes of this downward trend were Trump’s inconsistent tariff policies. Trump has threatened nations with looming tariffs and delayed other levies after implementing them for mere days. These erratic changes sent shock waves and confusion throughout the global economy.
Two days after Trump dodged a question about his policies triggering a recession, Leavitt answered reporters’ questions about a possible recession by twice stating the president “wants the American people to have so much money in their pockets they don’t know what to do with it.”
Leavitt echoed Trump’s explanation that the instability was part of a “period of transition” in reaction to “big” changes in economic policy.
A recession could threaten job security for millions of Americans and slow down production and consumption in an economy that reached record highs less than a month ago, according to experts.
Trump was scheduled to meet with the Business Roundtable Tuesday night to discuss his economic agenda.
One of Trump’s cabinet members, Commerce Secretary Howard Lutnick, was more definitive in ruling out a recession. “There’s going to be no recession in America,” he said in an interview with NBC Sunday.
After a historic plummet on Monday, stocks seemed to stabilize early Tuesday but dropped again after Trump announced over Truth Social he would increase tariffs on Canadian aluminum and steel to 50% on Wednesday morning. The newest hike in tariffs was a response to Ontario Premier Doug Ford’s statement that he would impose a 25% surcharge on electricity exports to New York, Minnesota and Michigan. Ford also threatened that he would shut off electricity to the U.S. if Trump imposed new tariffs on Canadian goods.
“The only thing that makes sense is for Canada to become our cherished Fifty First State,” Trump wrote in his post. “This would make all Tariffs, and everything else, totally disappear.”
Leavitt told reporters that Trump had not yet spoken with newly-elected Canadian Prime Minister Mark Carney. “There is continued correspondence between the President’s team, particularly Secretary Lutnick and the Canadians as well,” Leavitt said.
Though Trump said his general 25% tariff policy on Mexico and Canada would be delayed until April 2, some tariffs on Canada have already taken effect. China, however, was not given a similar grace period. Trump doubled the levy on Chinese imports to 20% March 4. India and European nations could be next, according to Trump.
Despite the stock market’s volatility, Leavitt defended Trump’s economic course.
“There’s great indication to be optimistic about where the economy stands,” Leavitt said. “What [Trump] envisions is reciprocity, fair trade practices where American workers are put first and are no longer ripped off by foreign countries all over this world.
