The International Monetary Fund (IMF) is actively evaluating the repercussions of President Donald Trump’s proposed tariff measures, including a new 25% tariff on automobiles. An article by Reuters highlights that while these tariffs could adversely affect the economic outlooks of Canada and Mexico, the IMF’s baseline forecasts do not predict a recession in the United States. According to IMF spokesperson Julie Kozack, these tariffs, if sustained, could have a “significant adverse effect” on the economies of these neighboring countries.

As the IMF continues its assessments, many of these impacts will be reflected in its upcoming World Economic Outlook forecasts, scheduled for release the week of April 21. Kozack emphasized that the report will detail which tariff actions have been considered in the IMF’s evaluations of economic growth and inflation. Meanwhile, data from the IndexBox platform suggests that the automotive sector could face substantial challenges, with potential disruptions in trade flows and increased costs for consumers and manufacturers alike.

Source: IndexBox Market Intelligence Platform