At the White House late yesterday, he struck a more upbeat note when asked if he was worried about a downturn. “I don’t see it at all. I think this country’s going to boom,” he said. And he played down the market slump, too. They’re “going to go up and they’re going to go down,” Trump said. “Doesn’t concern me.”

Still, only hours later, he told top executives gathered at a meeting of the Business Roundtable to brace for more tariffs, saying rates could even go higher. The president said increased levies simply meant it was “more likely” companies would move their operations inside the United States. “The biggest win is not the tariff—that big win is a lot of money—but the biggest win is if they move into the country and produce,” Trump said.

He told the executives that he’s putting a priority on speedy approvals, particularly regarding environmental regulations, and planned to soon announce a major electricity project, according to a person familiar with the session. He also reiterated a suggestion that a company’s business taxes could be reduced if it manufactured its products in the U.S. The White House did not immediately respond last night to a request for comment on Trump’s remarks.

While other Trump policies could also threaten U.S. growth, including the threat of mass deportations and Elon Musk’s moves to slash federal jobs and spending, the escalating trade war has been front and center of risk assessments. Economists say it will hike prices for consumers; retaliation will hurt U.S. exporters; and all of this could add up to a drag on growth.

The three chief targets so far—China, Mexico, and Canada—are the biggest U.S. trade partners. Yesterday, it was the latter that found itself in the crosshairs.

Apparently angered by Canada’s plans to retaliate with its own tariffs on U.S. dairy products and other goods, plus higher prices for electricity exports, Trump threatened to double the metals charge on his northern neighbor. He also warned of dramatic additional hikes if Ottawa didn’t relent on some of its own policies intended to protect the domestic dairy industry.

The coming levies would “essentially, permanently shut down the automobile manufacturing business in Canada,” Trump said.

A few hours later, Trump’s Commerce Secretary Howard Lutnick and Ontario Premier Doug Ford announced plans to meet Thursday in Washington, and said that the province would suspend its plans to slap a surcharge on electricity. “When you’re negotiating with someone and they’re not paying attention and they disagree, the president, who is the best dealmaker ever, has to say, ‘Here’s my response,’” Lutnick said in an interview with CBS News.

It’s likely only a respite in the trade-war escalation, as the 25 percent charge on imports of steel and aluminum hit at midnight, and a whole wave of them are lined up for next month. That includes “reciprocal” duties—matching what the U.S. sees as trade barriers imposed by other countries—and separate tariffs on a wide range of specific products, from autos and semiconductors to lumber.

It’s the shifting and unpredictable nature of Trump’s second-term trade war—and the extent that decisions rest on the whims of the president—that’s proving especially disruptive for industry and markets. Tuesday wasn’t the first time he has whipsawed markets with on-again, off-again tariffs.

“It’s dramatically different than the first administration,” said Marc Short, who served as chief of staff to Vice President Mike Pence back then. “One of the biggest challenges is, markets look at it and say, you know, ‘This is just part of his bluster,’ right?” Short said. “That it’s just negotiation. And it’s not.”

Corporate executives have been raising red flags. Canada is the main source of aluminum for U.S. industry, and several of the Ontario-based auto plants Trump was threatening to shut down are owned by U.S. automakers.

Addressing Congress last week, Trump acknowledged that the major economic overhaul he’s pursuing—to bring manufacturing jobs back to the U.S. and shrink the federal government’s role—may cause a degree of disruption. Aides including Treasury Secretary Scott Bessent have also suggested that there’ll be some pain. Retaliation by other countries to Trump’s tariffs could worsen the blow. Ontario sells electricity to states including New York, so additional taxes would add to pressure on U.S. household budgets already strained by persistent inflation.

Most economists don’t see an imminent U.S. recession risk. But there are some warning signals, from weaker consumer spending and sentiment to a spike in uncertainty among small businesses. Hiring across the economy stayed solid last month, but the jobless rate ticked up to 4.1 percent. Musk’s efforts to slim down the federal bureaucracy add another employment risk.

Trump says that initiative will bring growth to the private sector, and he defended it again on Tuesday. “We had some little hiccups, not big hiccups,” Trump said. “But we saved a tremendous amount of money into the future.”

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