US tariffs will hit economies of Mexico, Canada if sustained – IMF

The International Monetary Fund, IMF, on Thursday said US tariffs imposed on Mexico and Canada will have a significant adverse impact on the those countries if sustained.

This was as 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 thr 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.