Goldman Sachs: Canada, Mexico tariffs will raise US inflation by 0.6%

Goldman Sachs economists predict that Trump's 25% tariffs on Canadian and Mexican imports and 10% tariffs on Canadian energy will raise core U.S. consumer prices by 0.6%. "We do not rule out a last-minute pause in the imposition of tariffs," they wrote in a note to clients Monday night. "This time around, an obvious strategy would be to push the deadline to April 2 to align with other planned tariff announcements. If the tariffs go into effect, we believe they are unlikely to become a permanent feature of U.S. trade policy, although how long they will last is uncertain." The U.S. core consumer price index, which excludes food and energy, rose 3.3% year-on-year in January, while the Federal Reserve's preferred PCE index rose 2.6% year-on-year. (Golden Ten)