0241 GMT - The likelihood of U.S. tariffs on Mexico and Canada is higher despite the delay in the implementation, Nomura analysts say in a research note. Canada and Mexico could "reach a deal with the U.S. to either avert tariffs or soften the blow by securing conditional exemptions," they say. However, the analysts note that Trump previously said there was nothing that targeted countries could do to avoid higher tariffs. "If these tariffs fully take effect, their size will dwarf the entirety of the tariffs Trump imposed during his first term in office," they write, adding, "higher tariffs are likely to push up core inflation meaningfully, which reinforces our Fed call of no rate cuts this year." (sherry.qin@wsj.com)
(END) Dow Jones Newswires
February 03, 2025 21:41 ET (02:41 GMT)
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