Trump’s threatened tariffs on Canada and Mexico may boost inflation in the U.S., but there’s still “huge uncertainty” around macroeconomic forecasts, according to Deutsche Bank Research.

President-elect Trump's plan to increase tariffs on goods from China and impose them on products from Mexico and Canada would drive inflation up by nearly 1%, Goldman Sachs estimates.

Members of Trump’s transition team have pushed back against the idea that tariffs would spark widespread inflation. Even if some prices rise, those increases would be offset by lower demand elsewhere, Treasury Secretary pick Scott Bessent said in a recent radio interview.