How Trump's tariffs might warp two crucial readings on the health of the US economy

Published On Nov 27, 2024, 1:49 PM

President-elect Donald Trump's proposed tariffs on imports from Canada, Mexico, and China could potentially harm the U.S. economy by increasing inflation and widening the trade deficit. Economists predict that a 25% tariff on imports from Canada and Mexico, along with an additional 10% on goods from China, could lead import prices to rise by 8%, pushing inflation rates above 3%. While there are voices suggesting the tariffs may not be enacted, the uncertainty may still restrain investments and slow down economic activities due to companies being cautious about future cost increases.