Trump is threatening to get rid of one of the biggest reasons prices have remained in check

When President Donald Trump introduced his “Liberation Day” tariffs in April, many economists predicted Americans would soon experience massive price increases. While inflation has ticked up in the eight months that passed, it’s been nowhere near levels initially projected.

A big reason for that: Nearly everything from cars to toilet paper produced by America’s top two trading partners, Mexico and Canada, has been exempt from duties if goods comply with the terms of a trilateral free-trade agreement known as the United States-Mexico-Canada Agreement (USMCA), which Trump inked during his first term.

But the deal, which replaced the North American Free Trade Agreement, is scheduled to undergo a review in July, and already Trump is signaling he wants out. If that happens, it likely would usher in a floodgate of higher prices from which Americans have so far been shielded.

“We’ll either let it expire or we’ll maybe work out another deal with Mexico and Canada,” Trump said Wednesday. US Trade Representative Jamieson Greer also said in a Politico interview, “the reason why we built a review period into USMCA was in case we needed to revise it, review it or exit it.”

https://finance.yahoo.com/news/trump-threatening-rid-one-biggest-120059404.html

Just in time for the mid terms.