The Trump administration's trade policies and tariff implementations raise fears of a recession in North America, according to a Reuters survey.
Tariff Policies and Economic Uncertainty
Since February, the Trump administration has repeatedly threatened to impose 25% tariffs on goods from Canada and Mexico, only to pause these actions, creating uncertainty for investors. The latest temporary pause was announced last Thursday.
Economic Predictions for North America
Economists surveyed by Reuters describe the tariff situation as chaotic. According to Barclays New York senior economist Jonathan Millar, the risk of recession is significant. Uncertainty in trade policy has already impacted inflation, making it unlikely that the Federal Reserve will change interest rates soon.
Canada's Countermeasures
Canada is responding to Trump's tariffs with its own countermeasures. Ontario, the country's most populous province, announced a 25% surcharge on electricity sold to the US. Ontario Premier Doug Ford stated that this move is a direct response to Trump's trade policies.
Unpredictable tariff policies create significant economic risks for North America. Canada's countermeasures might add further pressure to regional trade relations.
