Kathleen Hagerty Provost | Northwestern University
President Donald Trump is anticipated to implement tariffs on Mexico and Canada, which are set to commence on Tuesday, according to U.S. Commerce Secretary Howard Lutnick. Although discussions have been ongoing, a final decision on the exact figures or whether the tariffs will be enacted has yet to be made.
Northwestern University economists Nancy Qian and Mark Witte are available for media interviews regarding the economic implications of this uncertainty.
"Uncertainty is the biggest problem of Trump tariffs in more ways than one," stated Nancy Qian, an economics professor at Northwestern’s Kellogg School of Management. She noted that while America could potentially succeed in a trade war due to its large economy, the lack of clarity about U.S. intentions and future policy shifts creates obstacles.
Last week, President Trump announced potential 25% tariffs on imports from Canada and Mexico starting March 4. He justified this by citing issues with illegal drugs and migrant flows into the United States. Previously, a 10% tariff was imposed on China after claims that Beijing failed to curb fentanyl shipments into the U.S., with proposed new tariffs potentially raising Chinese export levies to at least 20%.
"The Trump administration has swerved drastically on decades-long bipartisan U.S. foreign policy such as on Russia, American territorial expansion and developing economies," Qian added. "This uncertainty complicates negotiations."
Mark Witte, another Northwestern economist, emphasized that "this policy uncertainty is terrible for business." He explained that running a business involves managing risks where small price changes can disrupt deals, lead to job losses, and affect consumer access to products.
Witte shared concerns from friends who rely on imported parts for their products; proposed tariffs might push costs beyond competitive levels, threatening their businesses' viability.
Nancy Qian holds the James J. O’Connor Professorship in Economics at Northwestern's Kellogg School of Management. Her research examines factors influencing economic development such as geography and human capital. She is available for interviews by appointment via Shanice Harris at shanice.harris@northwestern.edu.
Mark Witte serves as a professor of instruction and director of undergraduate studies in economics at Northwestern University with research interests in macroeconomics and public finance. He can be contacted through mwitte@northwestern.edu or stephanie.kulke@northwestern.edu.