IMF Warns of Adverse Impact from US Tariffs on Mexico and Canada; Record Gold Hoard in US Exchanges Amid Tariff Frenzy

The International Monetary Fund (IMF) stated on Thursday that sustained U.S. tariffs imposed on Mexico and Canada would significantly and negatively impact those countries, citing their strong economic integration with the U.S. IMF spokesperson Julie Kozack noted that these tariffs, along with new duties on China and responses from China and Canada, represent significant new developments. The IMF plans to release a comprehensive assessment at its spring meetings in April. Former President Trump initially agreed that Mexico would not be required to pay tariffs under the USMCA agreement until April 2nd. This decision followed warnings from economists that tariffs on the nation's three largest trade partners could risk a recession. Trump also criticized Canadian Prime Minister Justin Trudeau on social media after Canada announced retaliatory tariffs. U.S. exchange warehouses are currently holding a record amount of gold, driven by a tariff-induced surge. Comex bourse inventories in New York reached 39.7 million ounces on Wednesday, valued at approximately $115 billion, marking the highest level since 1992. This increase is attributed to a rise in U.S. prices above international benchmarks, creating arbitrage opportunities for traders.