Corporate America awaits the aftershocks of Trump the Tariff Man.
The Trump administration said on Friday it would implement 25% tariffs on Mexico and Canada starting today and 10% on China, ending weeks of speculation.
On Saturday afternoon, Trump signed executive orders imposing exactly those tariffs.
In total, the US does roughly $1.6 trillion in business annual with the three economic powerhouses. Trump has been increasingly vocal on the need for tariffs against the countries since taking office in January as a means to promote his America First economic agenda.
EY chief economist Greg Daco estimates US GDP would contract by 1.5% in 2025 and 2.1% in 2026 if the tariffs kick in as they would “dampen” consumer spending and business investment. Inflation would rise by about 0.7% in the first quarter, Daco projects.
Watch: former Commerce Secretary Wilbur Ross thinks tariffs…
