Trade Policy Shifts and Economic Uncertainty
The United States has escalated its Tariff Policies
- Mexico, China, and Canada are the U.S.’s three biggest trade partners accounting for 41.5% of goods imports in 2024
- U.S. President Donald Trump’s new 25% tariffs on imports from Mexico and Canada took effect on March 2, 2025
- President Trump also issued a new Executive Order on March 3, 2025, to increase the 10% tariff on all imports from China to 20% on March 4, 2025
The United States faces economic risks
- The Atlanta Federal Reserve Bank has updated its GDP forecast for Q1 2025 from a -1.5% contraction to a -2.8% contraction, but noted that this is a modeled estimate
- The implementation of tariffs pose could slow economic growth and increase inflationary pressure
The Economic Policy Uncertainty Index has risen to its second highest level in history, but does create some…
- Heightened uncertainty creates a variety of challenges, including indecisiveness from businesses and volatility in the financial market
- As uncertainty rises, investors may continue reallocating capital toward hard assets such as real estate, seeking stability
Sources: Marcus & Millichap Research Services, U.S. Census Bureau
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