They're worth it, even if it leads to recession: Lutnick on Trump policies

US President Donald Trump has dismissed concerns over his policies, including tariffs, leading to a recession

Defending US President Donald Trump’s economic policies, Commerce Secretary Howard Lutnick has said, “They are worth it, even if they lead to a recession.”

 

According to an interview with CBS News, Lutnick on Wednesday (IST), said “These policies are the most important thing America has ever had.” He then moved on to blame the Joe Biden administration and stated that the ‘recession’ could only be possible because of the ‘Biden nonsense’ we lived with.

 

However, Trump dismissed concerns over his policies, including tariffs, leading to a recession. In an interview with Fox News, he said, “I hate to predict things like that. There is a period of transition because what we’re doing is very big. We’re bringing wealth back to America. That’s a big thing.”

 

 

Trump’s tariffs shake global markets

 

Lutnick’s remarks come at a time when Trump has waged a trade war against several countries, including Canada, Mexico, and China. His reciprocal tariffs on countries like India are set to come into effect on April 2 after he claimed that the US is being charged unfairly and high tariffs are being imposed on imports from these nations.

 

The stock markets have been rattled by Trump’s announcement of tariffs on Canada and Mexico. On Wednesday, his proposed tariffs on all steel and aluminium imports came into effect, invoking a stern response from Canada and the European Union, who also imposed retaliatory tariffs on US goods. This comes a day after the Trump administration announced some relief for Canada as they retracted the 50 per cent tariff on Canadian products.

 

What more did Lutnick say? 

Lutnick also asserted that the stock markets will learn to adjust to Trump’s negotiation tactics. This comes after he said that ‘the one-or two-day tariffs that have been withdrawn ultimately, have a purpose to serve’. He further stated, “When you’re negotiating with someone and they’re not paying attention and they’re disagreeing, the president, who’s the best dealmaker ever to sit in that chair, he’s going to say, ‘here’s my response’. And then all of a sudden, shockingly, they respond.”

 

Lutnick also denied that there is any chaos in the way Trump has been using tariffs to pressure its trading partners.