Trump says the US economy in “transition” with the escalation of the trade war

US President Donald Trump refused to say whether the American economy is facing stagnation or high prices in the wake of his management changes in tariff threats against some of its closest trading partners.

When asked if he expected a stagnation this year, Trump said that there was a “transitional period” that occurred.

However, Trade Minister Howard Lootnick insisted that there will be no shrinkage in the world’s largest economy, while admitting that the price of some goods may rise.

This comes after a volatile week for the US financial markets, as investors wrestle with uncertainty about the rotation of his administration in some of the main parts of its aggressive commercial policies.

The new customs tariff against China, targeting some American agricultural products, entered into force on Monday.

Speaking to Fox News in an interview that was broadcast on Sunday but recorded on Thursday, Trump answered a question about the recession: “I hate to predict things like that. There is a period of transition because what we do is very big. We are returning wealth to America. This is a big thing.”

“It takes some time, but I think it should be great for us,” he added.

Last week, the United States imposed a 25 % new tariff on imports from Mexico and Canada, but then gave many of these goods after only two days.

Trump also doubled a blanket tariff on the goods from China to 20 %. In response, Beijing has announced retaliatory taxes on some imports of agricultural commodities from the United States.

From today, some American agricultural products enter China – including chicken, beef, pork, wheat and soybeans – face a new tariff from 10 to 15 %.

“You see a lot of two nipples between the two sides to demonstrate that no of the two sides will easily retreat.

“China has realized that it might not be able to export its way to GDP growth in the way it was used, so it focuses more on the local economy at the present time.”

The US President accused China, Mexico and Canada not to do enough to end the flow of illegal drugs and migrants to the United States. The three countries rejected these accusations.

The stocks have decreased in Wall Street since Trump has ignited a trade war with the best trade partners in the United States.

Fear of investors fear that the customs tariff will lead to high prices and eventually growth in the world’s largest economy.

Speaking at NBC on Sunday, Lootnick said: “Foreign goods may become a little more expensive. But American goods will become cheaper.”

But when asked if the American economy had been facing stagnation, Lottenic added: “Certainly no … there will be no stagnation in America.”

Frank Lavin, former US Trade Ministry official, Frank Lavin, told the BBC that he believed the trade war is unlikely to escalate outside the scope of control.

He said that the customs tariff “will fade a little”, but it is still “an additional burden on the American economy.”

Rachel Winter, Investment Director of Killik & Co, told today’s program that it believes the United States is likely to have a period of higher inflation.

She said: “The customs tariff is in terms of theory and the level of definitions that Trump imposes, as I think, without a doubt, is to cause inflation somewhere below the line.”