Group 1 - The German industry associations and the Kiel Institute for the World Economy criticized the U.S. government's threat to impose tariffs on European countries, arguing that such actions would harm both European industries and the U.S. economy itself [1][2] - The President of the German Automotive Industry Association, Hildegard Müller, stated that new tariffs on European exports would incur high costs for Germany and Europe, urging Brussels to coordinate a "wise" response [2] - The President of the German Industrial Association, Peter Leibinger, emphasized that additional tariffs would not only impact European businesses but also severely damage the U.S. economy and consumer interests [2][3] Group 2 - A study by the Kiel Institute for the World Economy revealed that the costs of U.S. tariffs are primarily borne by American importers and consumers, contradicting the U.S. government's claim that foreign exporters would bear the burden [4] - The research analyzed over 25 million shipping data from January 2024 to November 2025, indicating that the additional $200 billion in tariffs expected by 2025 would be almost entirely shouldered by Americans [4][5] - The study further noted that the tariff costs first impact U.S. importers and wholesalers, then manufacturers and retailers, ultimately leading to price increases for American consumers and a more limited supply of goods in the U.S. market [5]

Core Viewpoint - Canadian inflation remains high, delaying interest rate cuts according to Dominique Lapointe from Manulife Investment Management [1] Inflation Analysis - The Bank of Canada is hesitant to overlook temporary price increases caused by retaliatory tariffs due to uncertainty regarding the extent of cost pass-through and other inflationary factors [1] - Despite high inflation, Canada has not yet faced recessionary pressures that would compel the central bank to adopt a more accommodative stance [1] Future Projections - Lapointe anticipates that rising unemployment, an expanding output gap, and the clearer temporary impact of tariffs on inflation will ultimately lead the central bank to implement two more interest rate cuts during the current cycle [1]