US Tariffs Begin to Show Impact in Macro Data

Fitch Ratings highlighted on Thursday that the initial effects of recent US tariffs on the economy became visible in January. A significant increase in US imports was observed as businesses accelerated their shipments to avoid upcoming tariff impositions.

Surge in Imports: A Pre-Tariff Stockpiling Trend

The report by the global ratings agency pointed out that this sharp rise was primarily driven by industrial supplies and consumer goods, indicating a clear pattern of stockpiling before the tariffs took effect.

Global Trade Shifts: Canada and Japan Respond

Notably, Canada's exports to the US saw a remarkable spike during the same period, especially in sectors like motor vehicles, industrial machinery, and metals. Canadian auto exports, in particular, surged by 17% month-on-month, reaching a peak not seen in nearly six years. On the other hand, Japan experienced an increase in shipments to Mexico, showcasing the global ripple effects of the US tariff policies.