Commerce Secretary Howard Lutnick said Sunday that Americans should “absolutely not” brace for a recession as President Donald Trump said the U.S. is in a “period of transition” as the administration plans to implement far-reaching reciprocal tariffs on goods from foreign countries.
“There’s going to be no recession in America. … Global tariffs are going to come down because President Trump has said, ‘You want to charge us 100%? We’re going to charge you 100%,’” Lutnick told NBC News’ “Meet the Press.”
Lutnick argued that Trump plans to “unleash America out to the world” and “grow our economy in a way we’ve never grown before.”
“So, if Donald Trump is bringing growth to America, I would never bet on recession, no chance,” the commerce secretary added.
In a separate interview on Fox News’ “Sunday Morning Futures,” host Maria Bartiromo asked Trump if he expects a recession this year.
“I hate to predict things like that,” the president told Bartiromo.
“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. And there are always periods of it takes a little time, it takes a little time,” he added.
Lutnick also promised Americans that grocery prices would start coming down in early April but warned that there would be price increases on foreign goods as a result of the Trump administration’s anticipated reciprocal tariffs.
“Yes, some products that are made foreign might be more expensive, but American products will get cheaper, and that’s the point,” Lutnick told “Meet the Press” moderator Kristen Welker, speaking about the effects of the reciprocal tariffs on foreign goods that Trump has said he will impose on April 2.
“The president is going to negotiate country by country. He’s going to drive down other countries’ barriers, unleashing our farmers, our ranchers and our fishermen. They’re going to explode in value and the prices of American produce, grow crops, produce and fish are going to come down,” Lutnick predicted.
“Donald Trump is behind them, protecting them,” Lutnick added, referring to American farmers. “He’s got their back, and he’s going to make them winners. And then all of America is going to be winners, because these prices are coming down. And the process starts April 2.”
In the Fox interview, Trump described his reasoning for the tariffs as protecting Americans from getting “ripped off.”
“Look, our country has been ripped off for many decades, for many, many decades, and we’re not going to be ripped off anymore on the tariffs,” he told Bartiromo.
Consumers and major retailers felt whiplash last week as Trump issued exemptions to tariffs on Canada and Mexico just two days after he introduced them.
But the exceptions to the tariffs issued last week expire on April 2 — the same date the president expects to impose reciprocal tariffs on other nations.
On Fox, Trump told Bartiromo that those tariffs will take effect on April 2, and he doesn’t plan to grant Canada and Mexico further extensions.
“It’s a transition into April, and after that, I’m not doing this. I mean, I told them, I said, ‘Look, I’m going to do it this one time. But after that, I’m not doing it,'” the president said.
He also said that the rate of tariffs on foreign nations could rise over time, telling Bartiromo, “We may go up with some tariffs. It depends. We may go up. I don’t think we’ll go down, but we may go up.”
Welker also asked Lutnick about tariffs on dairy, lumber, steel and aluminum that Trump said he would impose on Canada.
Lutnick said tariffs on steel and aluminum would still take effect on Wednesday, March 12, and that tariffs on lumber and dairy products would be delayed until April 2 as well, citing Canadian tariffs on U.S. goods and the need for tariffs to curb the fentanyl crisis.
“So on April 2, we are going to revisit again the fentanyl issues. And we are going to revisit again the trade, the general trade issues of reciprocality,” Lutnick said.
Earlier, Lutnick told Welker that the tariffs on Canada and Mexico would end “if fentanyl ends,” blaming both nations for allowing fentanyl to flow over the United States’ northern and southern borders.
“If fentanyl ends, I think these will come off. But if fentanyl does not end, or [Trump is] uncertain about it, they will stay this way until he is comfortable,” Lutnick said.
Grocery prices in particular could be adversely affected by Trump’s tariff plans. In 2021, the percentage of fresh fruit in the U.S. supplied by imports was 60% and 38% for fresh vegetables excluding certain crops, according to the U.S. Department of Agriculture.
Lutnick also spoke about tensions that may have emerged last week between members of Trump’s Cabinet and Trump adviser Elon Musk.
On Thursday, Trump convened his Cabinet to tell members that staffing decisions at their respective departments and agencies are up to them, not Musk and his Department of Government Efficiency, which had previously laid off thousands of federal workers across the U.S. government.
Lutnick on Sunday said Trump has made clear that he’s in charge and that Musk is a “partner” to each Cabinet secretary.
“President Trump made clear that Elon is your partner, and that is what we like,” the commerce secretary said. “You have the greatest businessman and greatest technologist in the world as my partner.”
“There’s no one watching this TV right now who, if Elon Musk said he was going to come over to their house and help them, wouldn’t, like, cheer,” Lutnick added. “You have the best technologist and the richest guy in the world saying, ‘I’ll help you.’ Come on. We want his help.”
