Trump Tariffs: risky gamble or clever negotiation tactic?
Trump’s day-one delay on tariffs is no retreat—it’s a power play, and the stakes are sky-high, warns the CEO of deVere Group, one of the world’s largest independent financial advisory and asset management organizations.
“With 25% tariffs on Mexico and Canada set for February 1, US businesses face a storm of higher costs, inflation is ready to roar back, and America’s biggest trading partners are being pushed to the edge. Is this a bold negotiation tactic or a reckless gamble? Either way, the consequences could be seismic,” warns Nigel Green.
He continues: “These tariffs are a tax on American businesses and families. They’ll drive up prices on everyday goods, shrink margins for companies, and trigger a chain reaction of higher costs across the economy.”
Mexico and Canada—responsible for 30% of all US imports—are bracing for impact. The US imported $475bn worth of goods from Mexico and $418bn from Canada last year, from cars to groceries. With tariffs slapped on, consumers will see sticker shock and businesses will face squeezed budgets.
“Inflation is ready to make a comeback,” the deVere CEO says.
“Higher import costs will hit wallets hard, while retaliation from trading partners could hurt American exports and jobs. It’s a lose-lose for the economy.”
The US exported $354bn worth of goods to Canada and $322bn to Mexico last year. If those countries fire back with tariffs, industries like agriculture and manufacturing could feel the heat—fast.
So, why the delay until 1 February?
Nigel Green is calling it a “clever bluff.”
“Trump’s pause isn’t hesitation; it’s strategy,” he explains.
“By dangling the threat of tariffs, he’s piling pressure on Mexico and Canada, and sending a warning shot to others like China and the EU. It’s a high-stakes gamble to force better trade terms.”
Adding fuel to the fire, Trump has ordered a probe into trade deficits and their national security risks, signaling more tariffs could be on the way.
“This isn’t just about Mexico and Canada—it’s about rewriting the global trade playbook,” says the deVere chief.
With inflation still simmering and supply chains recovering from past shocks, these tariffs could be throwing gasoline on a fire.
“If the plan is to boost American manufacturing, it’s a dangerous way to do it,” Nigel Green says. “Costs will spiral, allies will retaliate, and the global economy could hit turbulence.”
He concludes: “This isn’t business as usual. Trump’s tariffs risk creating chaos for global trade, and US businesses and investors need to be ready. This is a wake-up call to focus on long-term resilience as the short-term challenges pile up.
“As 1 February approaches, all eyes are on the administration. Will this gamble pay off, or are we on the brink of a trade war?”
