I'll rewrite the article in a more concise and streamlined format:
Trump Declines to Rule Out Recession as Tariff Policies Expand
In a Fox News interview with Maria Bartiromo, President Trump refused to rule out the possibility that his economic policies, including aggressive tariffs, could cause a recession.
"I hate to predict things like that," Trump responded when asked about recession concerns. "There is a period of transition, because what we're doing is very big. We're bringing wealth back to America... It takes a little time."
Trump's recent imposition of sweeping tariffs on Canada, Mexico, and China has disrupted stock markets and prompted pushback from major industries like automakers, who warned the duties would severely damage their business. Canada retaliated with $20.5 billion in tariffs on American exports, while China has also responded with countermeasures.
Despite abruptly reversing his 25 percent tariffs on many Canadian and Mexican exports last Thursday, Trump indicated more tariffs are coming. His administration plans to implement a 25 percent tariff on all foreign steel and aluminum this Wednesday, with additional "reciprocal tariffs" expected on April 2.
When pressed about providing businesses with certainty after April 2, Trump responded: "We may go up with some tariffs. It depends. We may go up. I don't think we'll go down, or we may go up... They always say that we want clarity. Look, our country has been ripped off for many decades, and we're not going to be ripped off anymore."
Economists have grown increasingly pessimistic about the economic outlook amid Trump's approach to tariffs, which has created considerable uncertainty for businesses considering new investments and hiring. The ongoing volatility threatens to intensify an economic slowdown already underway.
Heading into Trump's second term, the economy had already shifted to a more modest growth pace with a cooling labor market. Tariffs are broadly expected to raise prices for everyday goods while dampening growth. Lackluster growth combined with rising prices has stoked fears of stagflation - a toxic combination that would put the Federal Reserve in a difficult position.
Commerce Secretary Howard Lutnick countered recession concerns on Sunday's Meet the Press, stating Americans should not expect a downturn: "I would never bet on recession. No chance." He claimed deficit reduction would drive interest rates down, increased oil drilling would lower energy prices, and while foreign goods might become more expensive due to tariffs, "American goods are going to get cheaper."
Many economists disagree, noting that tariffs on foreign products often allow US companies to raise their own prices as well.