President Donald Trump did not deny there could be a recession this year under his leadership, telling Fox News there would be a “period of transition” as his economic policies take effect, as the president’s rapidly shifting tariffs on goods from Mexico and Canada have rattled the stock market and led to warnings of an economic downturn.

The Trump trade policies have raised fears of trade wars that could slam economic growth and raise prices for Americans still smarting from years of high inflation

Jacob Rees-Mogg, the Conservative MP, labelled Mr Carney the “high priest of project fear”. He survived the outcry and left the bank in 2020, laying the groundwork to assume leadership of Canada’s beleaguered Liberals, despite never having sat as an MP in the House of Commons.

Risks to the Mexican, Canadian and American economies are piling up amid a chaotic implementation of U.S. tariffs that has created deep uncertainties for businesses and decision-makers, according to Reuters polls of economists taken this week.

Commerce Secretary Howard Lutnick said on Sunday that the U.S. is headed for economic growth, not a recession.