Trump warns US economy faces' transition period '

U.S. President Donald Trump declined to predict whether the United States will face a recession, but he stressed that the economy faces a "transition period."

Responding to whether he expects a recession this year, Trump said on Fox News' Sunday Morning Futures: "I hate to predict things like that. There is a transition period because what we are doing is very big. We're bringing wealth back to America. It's going to take a little bit of time, but I think it should be a good thing for us."

Tariffs have been a major concern for investors, who have also been unnerved by Trump's erratic tariff policies, triggering a sell-off in tech stocks and levels of volatility not seen in years.

Commerce Secretary Robert Lutnick also said Sunday on NBC, "Absolutely not. There will be no recession in the United States."

Lutnick acknowledged that Trump's tariffs would lead to higher prices for American consumers buying some foreign-made goods, but he said American products would become cheaper.

On Tuesday, Trump announced that three of America's biggest trading partners had failed to do enough to stop the flow of deadly fentanyl and its precursor chemicals into the United States, and then imposed a new 25 percent tariff on imports from Mexico and Canada, as well as new tariffs on Chinese goods.

Two days later, he exempted many imports from Mexico and some from Canada from tariffs for a month, the latest twist in a volatile Trump trade policy that has roiled markets and raised concerns about U.S. inflation and economic growth.

This is the second time in two months that Trump has lifted fentanyl-related tariffs on U.S. neighbors.

Lutnick said: "If fentanyl is stopped, I think these bans will be lifted. But if fentanyl doesn't stop, or he (Trump) isn't sure about it, he's going to keep doing it until he's satisfied."