President Donald Trump said tariffs on some Canadian and Mexican goods planned for April 2 “could go up,” but he did not predict a recession in the United States in 2025.
In an interview broadcast on Fox News’ “Sunday Morning Futures With Maria Bartiromo,” Trump stated that reciprocal tariffs would go into effect on April 2 and that the one-month reprieve granted to Mexico and Canada was a “little bit of a break.”
In February, Trump announced 25% tariffs on the US’s neighbours. These were delayed for a month and imposed on Tuesday, but Trump decided on Wednesday to postpone tariffs on automakers for another month. He reversed course on Thursday, pausing tariffs on Mexican and Canadian goods covered by the USMCA free trade agreement until April.
“This is a transition into April; after that, I am not doing this. “I told (automakers), ‘Look, I am going to do it this once,'” Trump said.
However, Trump has continued to make changes to tariff plans. On Friday, he threatened to impose new tariffs on Canadian lumber and dairy products. These tariffs could take effect on Monday.
After Trump announced the latest one-month pause in most tariffs, Mexico’s President Claudia Sheinbaum decided to postpone retaliatory tariffs. Canadian Prime Minister Justin Trudeau has stated that Canada’s retaliatory measures will remain in place.
However, in a press conference on Thursday, Trudeau stated that these policies pose a long-term risk of a trade war between Canada and the United States.
Meanwhile, Commerce Secretary Howard Lutnick confirmed Sunday on NBC’s “Meet the Press” that Trump’s promised 25% tariffs on steel and aluminium imports will take effect Wednesday, while tariffs on Canadian dairy and lumber products will “start on April 2.”
Lutnick indicated that the tariffs, which go into effect on April 2, will continue until Trump is “comfortable” with how both countries are handling the flow of fentanyl, comments that appeared to be echoed Sunday by National Economic Council director Kevin Hassett on ABC News’ “This Week.” Hassett said Trump’s back-and-forth tariff moves were part of “a drug war, not a trade war,” aimed at reducing fentanyl imports into the United States.
“What happened was that we launched a drug war, not a trade war, and it was part of the negotiation to get Canada and Mexico to stop shipping fentanyl across our borders, and as we have watched them make progress on the drug war, then we have relaxed some of the tariffs that we put on them because they are making progress,” says Hassett.
Hassett claimed Canada is a “major source” of fentanyl imports, despite accounting for only 0.2% of the drug’s illegal imports into the United States.
Trade tensions and signs of slowing growth have raised concerns about a possible recession. When asked by Bartiromo if he expected a recession in 2025, Trump replied, “I hate to make predictions like that. There is a period of transition because what we are doing is so large.”
Trump added that the transition “takes a little time” but “it is going to be great, ultimately, for the farmer.”
According to the Conference Board’s most recent consumer survey, the percentage of respondents who expect a recession in the coming year increased to a nine-month high in February.
“The kinds of changes that are occurring under Trump are arguably unprecedented, and it is making people very nervous,” Mark Zandi, Moody’s chief economist, told CNN. “If confidence continues to fall for another three months, and consumers actually pack it in, then game over.”
