Part 2/8:
President Trump’s proposed tariffs threaten to impose punitive duties on goods coming from Canada and Mexico if stronger actions are not taken to curb illegal activities and migration. Early estimations from economists suggest that such tariffs could result in a 0.7% increase in core inflation and a 0.4% reduction in the gross domestic product (GDP) across the board.
However, this is just the tip of the iceberg, with potential ramifications reaching far beyond just North America. Analysts are voicing concerns about the broader implications of such moves—some even warning that these tariffs could take the U.S. back to economic norms reminiscent of the 1900s, significantly raising customs duty revenue as a percentage of imports.