Source: ITR Economics – March 2025With new tariffs on goods from Canada, Mexico, and China, uncertainty is impacting businesses and the stock market. Learn how to navigate these challenges!
Tariffs are creating a good deal of uncertainty for businesses and the stock market. As of this writing, the US has implemented 25% tariffs on Canada and Mexico and 20% tariffs on Chinese goods. Potential tariffs have also been announced on all food products coming into the US. Adding to the uncertainty, the 25% tariff on automobiles from Mexico and Canada has been postponed a month. As this is an evolving situation, we will continue to bring you updates.
In the meantime, there are a few aspects to keep in mind:
- Tariffs will be inflationary. Typically, the impact starts as more microeconomic – for example, the cost of avocados will go up before the impact is seen in the overall CPI figure. Ensure that you are using price metrics specific to your inputs rather than pegging your price increases solely to the CPI or PPI figures.
- Be watchful of consumer trends. We expect overall US Retail Sales to remain on track to grow 4.6% this year. Consumers will continue to spend, but you may see shifts in what they are buying as they become more price-conscious. For example, consumers