The Conference Board Chief Economist Dana Peterson joins Wealth to analyze President Trump's proposed tariff strategy and its potential economic implications. After talks with US officials, Mexico's President Claudia Sheinbaum announced that the Trump administration will be delaying tariffs on Mexican imports by one month, now starting on March 1.
Peterson explains that these tariffs are being used as a strategic "threat" to compel Canada, Mexico, and China to comply on critical issues like national security, drug enforcement, and immigration. However, she warns that implementing these tariffs could significantly impact GDP (gross domestic product) growth in both the United States and targeted economies.
Fourth-quarter GDP revealed a shift in consumer behavior, with individuals purchasing items expected to rise in price, including cars and food products. "Certainly, the substitution effect will take place," Peterson notes, "but that could take time as consumers figure out... where they could buy US-made products."
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Watch the full video to hear Peterson's full perspective on how potential Chinese tariffs might reshape electronics pricing in the United States.
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This post was written by Angel Smith