Trump: the US recession is "irrelevant" as the trade war in China becomes more important

President Donald J. Trump meets with Romanian President Klaus Iohannis at the White House Oval Office on Tuesday, August 20, 2019 in Washington, DC.Jabin Botsford / The Washington Post via Getty Images

• US President Donald Trump defended his trade war with China in a statement to the press Tuesday at the White House on Tuesday after asking about the prospect of a recession.
• "Whether it's good or bad, the short term is irrelevant, we have to solve the problem with China because it takes more than $ 500 billion a year," said President Trump on Tuesday.
• Many economists warn that a recession could be imminent and in part attribute to the trade war between Trump and China the cause of economic instability.
• Trump and his associates fear that a recession will severely reduce his chances of being reelected in 2020.
• Visit the Business Insider Home Page for more stories.

US President Donald Trump on Tuesday called the prospect of a US recession "irrelevant" and defended his decision to wage a trade war with China.

Speaking during the visit of the Romanian President Klaus Iohannis to At the White House on Tuesday, Trump was questioned over concerns that his trade war with China was negatively impacting the US economy.

The President replied that: "Someone had to face China. "

"And it's high time, whether it's good for our country or bad for our country in the short term," he said.

"In the long run, it is imperative that someone do it because our country can not continue to pay 500 billion dollars to China because stupid people are running it."

Read more: Trump would be so concerned about the threat of recession that he plans to reverse some of his signature customs tariffs

"I do not care about this question, whether it's good or bad, the short term is irrelevant, we have to solve the problem with China because it takes more than $ 500 billion a year. Does not include the theft of intellectual property and other things. "

And rephrasing the journalist's question, he continued, "And also, national security, so I'm doing it right or wrong for your statement about" OK, are we going to fall into a recession for two months? "

"The fact is that someone had to face China, my life would be much easier if I did not take China, but I like to do it because I have to do it."

The apparent acceptance of the president that his policy could cause economic problems in the United States marks a radical break from his remarks in recent days, in which he boasted of the strength of the company. US economy and accused the media and political opponents of distorting economic recession data and help torpedo its chances of re-launch in 2020.

Read more: Trump is convinced that there is a plot to skew economic data and exaggerate the prospect of a recession

Trump's remarks were echoed by his acting chief of staff, Mick Mulvaney. In a speech to GOP donors at an event in Washington DC on Tuesday, Mulvaney said that if the United States were to face a recession, it would be "moderate and short," he said. politico.

Mick Mulvaney, Acting Chief of Staff to President Trump.Cheriss May / NurPhoto via Getty Images

White House officials had previously insisted that data pointing to a possible recession were exaggerated, and the underlying indicators meant that the economic outlook was still good.

On Tuesday, Trump said he did not think a recession was imminent, but that payroll tax cuts were among the measures being considered if the US economic situation deteriorated.

"We are very far from a recession," Trump said. "In fact, if the Fed did its job, I think we would have a tremendous growth spurt, a tremendous boost."

Read more: One of Trump's top advisers said the yield curve indicated "a very strong Trump economy". But he said exactly the opposite in his book in 2006.

A rare inverted yield curve, where long-term borrowing rates became cheaper than short-term rates, occurred in the bond markets last week. An inverted yield curve once indicated that a recession or economic slowdown was preparing.

Some economists have pointed out that the trade war between Trump and China was one of the factors responsible for economic instability, which pushed him to conclude a trade deal with Beijing.

However, according to analysts, the confrontation between the Chinese president and China was one of the reasons he managed to win the victory in the rotating states of Rust Belt in 2016 and win the presidency.