11/27/2024

U.S. Trade Partners Say Trump Tariffs Would Harm All Involved

The Bank of Canada sees clear impact on both economies

Officials from Canada, China, Mexico and major industry groups warned that U.S. President-elect Donald Trump's threat of hefty tariffs on goods would harm the economies of all involved, cause inflation to spike and damage job markets.

Trump's pledge roiled currency, bond and equity markets on Tuesday, as the three countries are the United States' largest trading partners. Mexico and Canada are particularly intertwined in U.S. auto production and energy output thanks to decades of trade agreements between the North American neighbors.

Trump's plan to impose a 25 percent tariff on Canadian and Mexican imports on his first day in office does not exempt crude oil as industry executives had hoped, two sources familiar with the plan told Reuters on Tuesday.

Please select this link to read the complete article from Reuters.