US Tariffs Begin to Show Economic Impact

According to Fitch Ratings, the initial effects of recent US tariffs have started to surface in macroeconomic data as early as January. A significant increase in US imports was observed, with businesses accelerating shipments to avoid impending tariff costs.

Stockpiling Patterns Emerge

The report highlights a notable rise in imports of industrial supplies and consumer goods, indicating a clear trend of pre-tariff stockpiling by businesses aiming to mitigate future expenses.

Global Trade Adjustments

Canada experienced a spike in exports to the US, especially in sectors like motor vehicles, industrial machinery, and metals. Notably, Canadian auto exports saw a 17% month-on-month increase, reaching a peak not seen in nearly six years. Similarly, Japan reported an increase in shipments to Mexico, suggesting a shift in global trade dynamics in response to US tariff policies.