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Investing.com-- U.S. Commerce Secretary Howard Lutnick defended President Donald Trump’s economic agenda in a CBS interview on Tuesday, stating that they were “worth it” despite risks of a recession.
“It’s worth it,” Lutnick told CBS, when asked whether it would be worth executing Trump’s policies even if they led to a recession. “These policies are the most important thing America has ever had,” Lutnic said.
But he also blamed the possibility of a recession on the Biden administration.
Lutnick’s comments come amid heightened uncertainty over the economic impact of Trump’s policies, especially his imposition of trade tariffs on several major U.S. trading partners. Trump recently imposed 25% tariffs on Canada and Mexico, although he granted exemptions for several key sectors. Lutnick told CBS that the U.S. no longer plans to double tariffs on steel and aluminum imports from Canada.
But Trump’s flip-flopping on his tariff agenda has sparked increased uncertainty over the economic outlook.
The prospect of increased inflation due to the tariffs, coupled with the impact of retaliatory measures from other countries, has kept markets largely on edge over a potential recession.
Trump, in a recent Fox News interview, also declined to rule out the possibility of a recession.
Lutnick said the tariffs were mainly a negotiating tactic, repeating the President’s promise of reciprocal tariffs by early-April. “Let the dealmaker make his deals,” Lutnick said.