UBS Notes North America Considerations From This Week's U.S. Reciprocal Trade Tariffs

10:43 AM EDT, 03/31/2025 (MT Newswires) -- This year's United States tariffs have prompted other governments to respond with equal tariffs -- and a range of other non-tariff measures -- and consumer boycotts of U.S. goods and services independently of government action, such as a collapse in Canadian travel to America, said UBS.

Some countries, like Mexico, have taken a wait-and-see approach, preferring to give dialogue and diplomacy

time to achieve tariff removal, wrote the bank in a note to clients.

A large share of the announced and implemented tariffs in North America has already been shielded from the U.S.-Mexico-Canada (USMCA) free trade agreement.

The positive tone that emerged out of President Donald Trump's meeting with Canadian Prime Minister Carney last Friday could presage a broader de-escalation of tariffs across North America, especially given the emergence

of a pragmatic U.S.-Mexico bilateral relationship, stated UBS.

Potential offramps include steps already taken to bolster border security and fight drug trafficking, as well as the potential to write tougher rules-of-origin content requirements into the upcoming USMCA review to prevent the transshipment of goods into North America to avoid tariffs, added the bank.

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