Imagine three friends: the US, Canada, and Mexico. They're trading partners, but things are getting tricky! The US president has been changing his mind about taxes on goods traded between them. This makes planning the future very hard.
This change is causing a lot of confusion and uncertainty for businesses and economists who are trying to predict the economy. It's like trying to build a sandcastle during a storm!
- Taxes on goods going between the countries keep changing.
- This makes it hard to know what will happen to prices.
- Businesses are worried about what will happen next.
| Thing | What's happening |
|---|---|
| US Economy | Risks of a recession (a period of economic decline) are rising. |
| Inflation | Prices are going up, making things more expensive. |
| Uncertainty | Businesses are confused about future trading rules. |
Economists are having a hard time making predictions because of all the changes. They are even considering two different scenarios - one with high taxes and one without.
