Recession risks rise for all three North American economies over US tariff chaos: Reuters poll | U.S. & World [Video]

By Indradip Ghosh, Gabriel Burin and Mumal Rathore

(Reuters) – Risks to the Mexican, Canadian and American economies are piling up amid a chaotic implementation of U.S. tariffs that has created deep uncertainties for businesses and decision-makers, according to Reuters polls of economists taken this week. 

U.S. inflation risks, which were already rising, have worsened, leaving the Federal Reserve on the sidelines for several months at least, while for Mexico, Canada and the U.S., recession risks are also mounting, the surveys found.

U.S. President Donald Trump’s administration has threatened 25% tariffs on imports of goods from its two neighbouring trading partners and on Thursday removed them temporarily for a second time in only about six weeks of government.

This has made it nearly impossible to forecast growth, inflation and interest rates well into the future, economists say, even leaving the immediate Bank of Canada rate decision on March 12 – already likely to be nuanced – too difficult …