The International Monetary Fund (IMF) has cautioned that the US tariffs imposed on Mexico and Canada will have a significantly adverse impact on both countries if sustained.
This warning comes as the IMF highlights the strong economic integration between these nations and the US.
According to IMF spokesperson Julie Kozack, the tariffs, combined with new duties on China and retaliatory measures from China and Canada (and potentially Mexico), represent significant developments.
The IMF plans to release a comprehensive assessment at the upcoming spring meetings of the IMF and World Bank in Washington, D.C., in April.
Kozack emphasized the importance of assessing whether current trends in financial market volatility, driven by global uncertainty, are short-lived or sustained.
She noted that prolonged uncertainty can lead to households and firms delaying consumption and investment decisions.