By Greg Ip

President Trump's 25% tariffs on imports from Canada and Mexico, and 10% on Canadian energy, will raise core consumer prices in the U.S. by 0.6%, Goldman Sachs economists predicted. "We would not rule out a last-minute pause in the tariff," they wrote in a note to clients Monday evening.

"An obvious strategy this time would be to push the deadline to April 2, to align with other planned tariff announcements. If the tariffs take effect, we think they are unlikely to become a permanent feature of US trade policy, though how long they would last is uncertain."

Core prices, which exclude food and energy, were up 3.3% in January from a year earlier using the consumer price index, and 2.6% using the Fed's preferred index. The additional 10% tariff on China to go into effect at the same time would raise core prices by 0.1%, they wrote.

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March 03, 2025 22:02 ET (03:02 GMT)

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