A leading global shipping giant, Maersk, has joined a growing chorus of experts and retailers warning that President Donald Trump’s tariffs on Mexico and Canada will lead to inflation in the short-term. Charles van der Steene, president of Maersk North America, says “the short-term effect of any tariff is clearly inflation.” The company expects inflationary pressures from the tariffs to extend at least over the mid-term, with potential retaliatory tariffs from Mexico, Canada, and China further exacerbating the issue.
The White House has previously disputed this claim, with Commerce Secretary Howard Lutnick saying tariffs are not inflationary. However, Maersk’s view aligns with that of retailers like Target, which expects prices to rise within days on produce. The US Chamber of Commerce has also warned that tariffs will only raise prices.
As the trade war escalates, Maersk believes the inflationary impact will persist over the mid- to long-term. However, van der Steene notes that there is greater uncertainty about tariffs and supply chain repatriation in the longer term. He also highlights the resilience of the US consumer, saying “we continue to see the U.S. consumer and the U.S. market overall to be extremely resilient and strong.”
Source: https://www.cnbc.com/2025/03/04/inflation-from-trump-tariffs-will-hit-soon-says-shipping-giant-maersk.html