DONALD Trump yesterday admitted he’d be willing to trigger a two-month recession as a price for his China trade war.
The US President insisted his aggressive policy to take on Beijing’s economic might will be worth short-term pain for long-term gain.
President Trump said on Tuesday that the US could handle a two-month recession if it meant a better trade arrangement with China[/caption]
The US and world economies have been stuttering in recent months – prompting fears a recession is on the way[/caption]
Trump brushed off the idea of a recession as “irrelevant” – and said it was imperative to “take China on.”
He told reporters at the White House: “It’s about time – whether it’s good for our country or bad for our country short term.”
Responding to a question, Trump added: “Your statement about, ‘Oh, will we fall into a recession for two months?’ OK?
“The fact is somebody had to take China on.”
Trump has imposed tariffs on some US imports from China – hurting American manufacturers, financial markets – and some consumers.
The president assured that the US is “very far from a recession” – but called on the Federal Reserve to slash its benchmark interest rate.
But he also said he is considering a temporary payroll tax cut to stimulate faster economic growth.
White House spokesman Judd Deere said later: “The president does not believe we are headed for a recession.
“The economy is strong because of his policies.”
It comes as the US economy appears to be showing vulnerabilities after more than 10 years of growth.
Factory output has fallen and consumer confidence has waned as he has ramped up his trade war with China.
There are fears in the White House that a slowdown – if not a recession – could arrive just as Trump is seeking reelection.
Trump announced a 10 per cent hike on $300 billion worth of Chinese imports earlier this month – shaking the stock markets.
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He later decided to delay some of the tariffs that were slated to begin in September.
It came after 25 per cent tariffs are already in place for $250 million in other Chinese goods.
A survey on Monday showed a big majority of economists expecting a downturn to hit by 2021 amid a recent slowing in the world economy.
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