Trump Administrator tries to suppress economic concerns

The Trump government hopes to alleviate some of the concerns about the US economy, since President Donald Trump’s relaxing tariffs come into force on foreign trade partners.

Sunday via NBC’s “Meet the Press”, Scott Bessent, said “It does not have to be a recession” and expressed skepticism about the daily market volatility.

“Who knows how the market will react in a week in one day,” said Bessent. “We look at the long -term economic foundations for the prosperity that I think the previous government has brought us to a course for financial disasters.”

Related history | What Trump’s new tariffs will mean for us consumers

His comments come only a few days after all three major US stock indices were closed after a week of selling out in red. The Dow Jones Industrial Average dived on Friday by more than 2,200 points to 38,314 points and marked the first time that the index has fallen under 40,000 since August 2024.

In the meantime, the decline of the DOWs 5% was reflected by the S&P 500 and the Nasdaq Composite, which declined by 322 points or 962 points.

The Rough Week on Wall Street came, after the announcement by President Trump that he imposed a basic tariff of 10% to all US trading partners, with additional tariffs for what the White House described as “worst offender”.

“In my opinion, this is one of the most important days in American history,” said President Trump during the announcement last week. “For years, hard -working American citizens had been forced to sit on the edge on the edge, since other nations were rich and powerful, a lot of them at our expense. But now it is to thrive, and thus use trillions and trillion dollars to reduce taxes and pay for our public debt.”

In response to this, countries such as China and Canada reacted with their own retaliation tariffs for US exports.

Related history | New tariffs are effective: the USA begins to collect a 10% mandatory for imported goods

The White House says that the tariffs will increase hundreds of billions of dollars and trigger more companies to produce their goods domestically. However, many economists say that consumers will pay the price – including the business professor Keith Maskus.

“In the end, it is pretty much always the domestic consumers who almost pay the full proportion of these tariffs. And it is exactly the way tariffs work,” said Maskus.