The International Monetary Fund, or IMF, stated on Thursday that if US tariffs on Canada and Mexico continue, they will have a major negative effect on both nations.
This was as the IMF cited the strong integration of both countries with the US economy.
IMF spokesperson Julie Kozack, who made this statement, said the US tariffs on Mexico and Canada and new duties on China, along with responses from China and Canada, and potentially Mexico, amounted to significant new developments.
According to Kozack, the IMF would release a more comprehensive assessment at the spring meetings of the IMF and World Bank in Washington in April.
She cited increased volatility in financial markets reflecting global uncertainty, stating that it would be critical to assess whether the trends would be short-lived or sustained.
“Sustained periods of elevated uncertainty can be associated with both households and firms holding back on consumption and investment decisions,” she said.
Written By Matthew Atungwu