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President Donald Trump acknowledged the economic challenges facing the US as his tariffs and efforts to rebuild the American manufacturing sector take effect, admitting that "it takes a little time" before Americans will see the benefits of his policies.

In an interview aired Sunday, Trump declined to rule out the possibility of a recession in 2025, despite reassurances from his advisers that no downturn is imminent.

Trump's comments marked a shift from earlier optimism when he promised quick economic victories through his policies.

According to the Washington Post, the president explained that a "period of transition" is necessary as the US adjusts to his tariffs, particularly those aimed at China, Mexico, and Canada.

Despite the rising uncertainty in the stock market, Trump insisted, "you have to do what's right," even if markets react negatively.

His tariffs, he said, are part of a broader plan to bring wealth back to the US, though he noted it might take time for the positive effects to be fully realized.

When questioned about the potential for a recession, Trump responded cautiously, saying, "I hate to predict things like that.

There is a period of transition, because what we're doing is very big." He emphasized that the aim of his policies is long-term prosperity for Americans, even if short-term economic conditions remain uncertain.

Trump Faces Economic Volatility as S&P 500 Declines Since Inauguration

The economic landscape has been marked by increased volatility, with the S&P 500 index seeing a significant decline since Trump's inauguration, Business Insider said.

While Trump downplayed these market drops, claiming that his actions are building a foundation for the future, he faced mounting concerns from businesses about the impact of tariffs.

Companies, especially US automakers, have called for clarity on how the tariffs will affect them, and Trump responded by downplaying their concerns, stating, "They just use that. That's like, almost a sound bite."

One notable move was his decision to pause the 25% tariffs on imports from Mexico and Canada, a decision aimed at aiding American car manufacturers. Trump explained that the delay would help manufacturers during a "transition period," although he made it clear that the tariffs would resume after April 2.

Despite Trump's reassurances, economists have raised concerns about the long-term effects of his trade policies. Some argue that tariffs will only increase inflation, and rebuilding US manufacturing could prove more complicated than simply imposing trade barriers.

Former deputy US trade representative John Veroneau pointed out that technological advancements, rather than tariffs, have driven the decline in US manufacturing jobs over the past fifty years.

The president has framed his tariff strategy as a means of reducing the U.S. trade deficit and fostering a stronger domestic economy.

However, the effects of these policies remain uncertain, especially as inflation continues to put pressure on American consumers.

Trump's team has argued that these challenges are temporary and will eventually lead to lower prices for US-made goods and a stronger economy. However, critics worry that the long-term economic disruptions could outweigh any potential benefits.

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