As economic forecasts spark renewed concerns about a potential recession, President Donald Trump has moved to reassure the American public, asserting that any short-term slowdown would be temporary and that the nation’s long-term economic outlook remains strong.
In a recent interview on NBC’s Meet the Press, President Trump dismissed speculation that the U.S. could enter a recession. “Everything’s OK,” he stated when asked whether a recession would be acceptable if it led to future economic gains. “This is a transition period. I think we’re going to do fantastically.”
The president’s comments follow new data from the U.S. Commerce Department, which shows that the economy shrank by 0.3% in the first quarter of 2025. The contraction was partly driven by a decline in exports and a surge in imports as businesses adjusted to anticipated tariff hikes.
President Trump, who began his second term in January, attributed the early economic dip to policies under former President Joe Biden. “That’s Biden,” Trump said during a Cabinet meeting, referring to the first-quarter GDP numbers. “We came in on January, these are quarterly numbers… I was very against everything that Biden was doing regarding the economy.”
Since taking office, Trump has enacted an aggressive trade strategy, targeting major U.S. trading partners like China, Canada, and Mexico with sweeping tariffs. While the administration temporarily paused a broad round of tariffs last month for a 90-day review, it simultaneously increased duties on Chinese imports, raising the rate to 145%.
These measures have led to market fluctuations and a divide among analysts. Some on Wall Street remain concerned that elevated tariffs could drive up consumer costs and disrupt supply chains. Others argue the policy could create long-term benefits for American manufacturers and workers.
In his defense of the strategy, Trump has sought to minimize concerns about price increases. “Maybe the children will have two dolls instead of 30 dolls,” he remarked, “and maybe the two dolls will cost a couple of bucks more than they would normally.”
As the economy enters a pivotal moment, experts will be watching closely to see whether Trump’s policies deliver the economic revitalization he promises or contribute to the recession fears currently circulating among economists and investors.
Shifts in economic policy and global trade can directly affect hiring, wages, and supply chain stability for job seekers and employers alike. DiversityEmployment.com will continue to monitor developments that impact the American workforce as the nation navigates this uncertain economic landscape.
Source: NBC News – Trump downplays recession fears, saying the U.S. would be ‘OK’ in the long term by Alexandra Marquez