President Donald Trump addressed the media in the Oval Office at the White House in Washington, DC on March 7, 2025. During his interview on Fox News’ “Sunday Morning Futures With Maria Bartiromo,” Trump discussed the potential increase in tariffs on goods from Canada and Mexico, scheduled for April 2. He mentioned that the United States may face a recession in 2025, but refrained from making any definitive predictions.
Trump announced reciprocal tariffs set to take effect on April 2, following a one-month delay granted to Mexico and Canada. Initially, he imposed 25% tariffs on these neighboring countries, then later paused tariffs on automakers for an additional month. Subsequently, he temporarily halted tariffs on Mexican and Canadian goods under the USMCA free trade agreement until April.
Despite his earlier decisions, Trump threatened new tariffs on Canadian lumber and dairy products, which could be implemented as soon as Monday. The back-and-forth nature of Trump’s tariff plans has caused uncertainty among trade partners, with Canada and Mexico considering retaliatory measures.
Commerce Secretary Howard Lutnick confirmed that the promised 25% tariffs on steel and aluminum imports would be enforced starting Wednesday, with tariffs on Canadian dairy and lumber products slated for April 2. Lutnick indicated that these tariffs will remain until Trump is satisfied with efforts to curb the flow of fentanyl into the United States.
Amid escalating trade tensions and concerns about economic slowdown, fears of a looming recession have emerged. Trump acknowledged the period of transition and emphasized its benefits for farmers, expressing optimism for the future. The uncertainty surrounding Trump’s trade policies has led to heightened anxiety among the public, with worries about potential economic repercussions.
The chief economist at Moody’s, speaking to CNN, warned, “If consumer confidence keeps declining for another three months and consumers decide to stop spending, it could be game over.” This report includes contributions from CNN’s David Goldman and Betsy Klein. To access more CNN news and newsletters, sign up for an account on CNN.com.
