The recent tariffs imposed on goods from Canada, Mexico, and China are raising concerns about their impact on US consumers and the broader economy.
S&P Global Ratings global chief economist Paul Gruenwald joins Wealth host Madison Mills to discuss how the tariffs will likely be passed onto US consumers. Gruenwald also shares his outlook for the economy, noting that while a US recession is unlikely, North American trading partners like Mexico and Canada may face a slowdown.
"Our trading partners, Mexico and Canada, they are likely to go into recession with reductions in growth on the order of 1 to 2 percentage points," Gruenwald explains. Additionally, he highlights the role of uncertainty in these economic slowdown forecasts: "If this does indeed lead to a pullback in spending, it would be kind of an own goal. It doesn't necessarily mean a recession, but it's kind of an avoidable slowdown in growth."
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This post was written by Josh Lynch