President Donald Trump downplayed concerns about a potential recession resulting from his economic policies, asserting that the economy would be stable in the long term despite possible short-term downturns. He emphasized that the current period is transitional, aiming for long-term economic improvement, even if it means enduring short-term economic turbulence. Trump's trade war, particularly with China, and his use of tariffs have been noted as contributing to the economic slowdown, with a reported annualized GDP rate of -0.3% in the first quarter, marking the worst performance since 2022. The administration has suggested that a recession might be a necessary consequence to achieve the desired economic reset, with officials like Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick indicating that a temporary economic contraction could be acceptable. Despite these challenges, the exact state of the economy remains uncertain, as the official definition of a recession requires a significant decline in economic activity over several months.

President Trump expressed confidence that the economy would be 'OK' in the long term, despite acknowledging that his policies might lead to a recession in the short term. He described the current economic situation as a 'transition period' aiming for future growth.

Trump's economic strategies, including aggressive tariffs and a trade war with China, have caused concerns as they have negatively impacted the GDP, which shrank at an annualized rate of -0.3% in the first quarter.

The administration justifies the economic disturbance as a necessary phase to reset the global economic order and revive American manufacturing, with some officials considering a recession an acceptable risk.

Trump acknowledged potential consumer impacts, such as shortages and increased prices, suggesting that these are manageable trade-offs for long-term benefits.

While the economy is showing signs of weakness, it remains uncertain whether it meets the official criteria for a recession, which involves a prolonged and widespread decline in economic activity.