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0 News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/trumps-tariff-delay-strategic-move-or-risky-gamble/
The CEO of deVere Group, Nigel Green, has issued a stark warning about the potential consequences of President Donald Trump’s decision to delay the imposition of 25% tariffs on Mexico and Canada, set to take effect on February 1.
Green, leading one of the world’s largest independent financial advisory and asset management organizations, calls the delay a “power play” that could have seismic consequences for the US economy.
“The stakes couldn’t be higher,” Green asserts. “These tariffs represent a tax on American businesses and families, pushing up prices on everyday goods, squeezing corporate margins, and sending shockwaves through the broader economy.”
Mexico and Canada, key trading partners of the US, are bracing for the tariff impact. Together, they account for 30% of US imports, with goods worth $475 billion imported from Mexico and $418 billion from Canada last year. The proposed tariffs would affect a range of products, from cars to groceries, raising prices for consumers and adding pressure on business budgets.
Green predicts a resurgence of inflation, warning that the higher import costs could “hit wallets hard.” The retaliatory measures from Mexico and Canada could lead to reduced American exports, particularly in sectors like agriculture and manufacturing, which rely heavily on trade with these countries.
While the tariff deadline looms, Green interprets Trump’s delay as a calculated move rather than indecision. He describes it as a “clever bluff” designed to apply pressure on Mexico, Canada, and potentially other trading partners like China and the EU. By holding off on the tariffs, Trump is signaling his intent to secure better trade terms without immediately triggering a trade war.
The US also faces the prospect of further tariffs, as Trump has ordered an investigation into trade deficits and their potential national security implications. This, Green suggests, is not just about the North American trade partners—it’s part of a broader strategy to reshape the global trade landscape.
As the US grapples with inflation and recovering supply chains, Green warns that these tariffs could be the spark that reignites economic instability. “If the goal is to boost American manufacturing, it’s a dangerous strategy,” he cautions. “Costs will rise, allies will retaliate, and global trade could face major turbulence.”
With the February 1 deadline fast approaching, all eyes are now on the Trump administration. Will this high-risk gamble pay off, or could it trigger a full-blown trade war that disrupts global markets? Green urges businesses and investors to brace for potential chaos in the trade environment, highlighting the need for long-term resilience amid mounting short-term challenges.
News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/trumps-tariff-delay-strategic-move-or-risky-gamble/
