Wall St gears up for fallout from likely tariffs on Canada and Mexico

The impact of imposing these tariffs,” will “have the effect of depressing US economic growth, contributing to a higher rate of inflation, and those effects will be worse if the other countries retaliate in kind”.

Marcus Noland, executive vice-president of the Peterson Institute for International Economics, said

The Canadian and US auto industries have been intertwined for 60 years,

Stanford said

If these tariffs are to pay for tax cuts for billionaires, ... doesn’t the supposed benefits that tariffs have for the working class get canceled out somewhat?”

Owens asked

US exporters will face a particularly tough time, as they are likely to face rising tariff barriers in their foreign markets,

Prasad said

The tariffs would apply each time parts cross the border,

Stanford said

Joseph Stiglitzeconomist

It’s inconceivable that other countries won’t retaliate,

said Stiglitz, who was chairman of Bill Clinton’s council of economic advisers

I am establishing a robust and reinvigorated trade policy that promotes investment and productivity, enhances our nation’s industrial and technological advantages, defends our economic and national security, and–above all–benefits American workers, manufacturers, farmers, ranchers, entrepreneurs and businesses.”

On inauguration day, the White House issued his “America First Trade Policy” memo, saying

If growth slows down, tax revenues will slow down,

he said

I didn't say that. You said that." ... We may or may not. We're going to make that determination probably tonight—on oil."

On Thursday, when pressed by a reporter about whether there would be "no oil tariffs," Trump replied ... The president added

Even very high tariffs could only replace a minority of the revenue raised by income taxation, and such high tariffs would cripple the economy."

Kimberly Clausing, an economist and a professor at the UCLA School of Law, previously told Newsweek

The inclusion of Canada oil in a 25 percent tariff on Canada and Mexico would likely initially raise gasoline prices in the U.S. Midwest."

Analysts from Goldman Sachs, including Daan Struyven, wrote in a note, as quoted by The Financial Post

Oil is going to have nothing to do with it, as far as I'm concerned,

Speaking to reporters on Thursday, Trump said ... when asked whether the tariffs would cover Canadian crude

President Trump’s tariffs will tax America first,

said Matthew Holmes, public policy chief at the Canadian Chamber of Commerce

If they keep threatening and then don't put them in place, they’re going to lose credibility,

the executive said

However, potentially dismantling a decades-long free-trade area could be a significant shock,

said a recent JPMorgan note

Our sense is that Trump will vacillate between carrots and sticks with China, with the ultimate goal being some sort of grand bargain before the end of his term,

he said in a recent note

Canada and Mexico stand to lose 3.6 percent and two percent of real GDP respectively, while the US would suffer a 0.3 percent real GDP loss,

he added

So China is going to end up paying a tariff also for that, and we are in the process of doing that,

he said

Because we don’t need the products they have. We have all the oil you need,

he said

We don’t think [the tariffs] will happen,

Sheinbaum said on Wednesday