Trump's tariffs are a customs officer's 'nightmare': Economist
With just 10 days remaining until the March 4 deadline for potential tariffs to be imposed against Canada and Mexico, negotiations between these nations and the United States have intensified. Meanwhile, Canada's six largest banks are reportedly building financial reserves to mitigate the impact of possible tariffs. "The clock is ticking on a number of fronts," explains Council on Foreign Relations (CFR) senior fellow Heidi Crebo-Rediker. The former US State Department chief economist notes this to be "about leverage for illegal immigration and for stemming the flow of fentanyl," but suggests that both Canada and Mexico still have flexibility to pursue non-tariff alternatives that could prevent the measures from taking effect on March 4th. Despite these possibilities, broader economic consequences remain unclear. Crebo-Rediker warns about the inflationary risks, stating, "I don't think that we have an administration that fully appreciates the supply chain shock that would come from imposing the 25% tariffs, especially on Canada and Mexico." She adds that, ultimately, consumers will feel the biggest impact of tariffs, and "companies should be worried about this." To watch more expert insights and analysis on the latest market action, check out more Catalysts here. This post was written by Angel Smith
